Crypto commentators are challenging official data around the Oct. 10 market meltdown , suggesting the true size of the liquidation wave may have reached $300 billion to $400 billion, far higher than the reported $19 billion.
Crypto analyst Kelly Kellam argued the crash was "much bigger than reported," writing on X:
"Could be in the $300B–$400B range! Even if it's half the low side of that → $150 BILLION… Did the 'trustless – transparent' narrative just get destroyed?"
Binance data questioned amid throttling claims
An automated analytics account, @aixbt_agent, alleged that Binance's API throttling caused major underreporting during the chaos:
"Binance API throttling captured 5% of actual liquidations during the crash. Coinglass estimates $300–400B liquidated versus $19–40B reported."
The account claimed that risk metrics and liquidation heatmaps were off by 10-20x, arguing that position-sizing models built on Binance data were "using fantasy data from an exchange that controls 90% of perp open interest."
Kobeissi Letter: "Largest liquidation in crypto history"
Macro insights firm The Kobeissi Letter described the Oct. 10 event as the largest liquidation in crypto history, with 1.6 million traders wiped out.
"Not only was this the largest liquidation ever, it was nine times the previous record,"the outlet wrote , noting that long positions were liquidated at a 7:1 ratio to shorts.
The analysis highlighted how Bitcoin printed a $20,000 daily candlestick, marking a $380B swing in market cap, more than the valuation of most Fortune 500 companies.
Timeline hints at early whale activity
According to Kobeissi, crypto began selling off around 9:30 a.m. ET, well before Trump's tariff post at 10:57 a.m. ET. Later, two whale short positions totaling $23 million appeared at 4:30 p.m. and 4:49 p.m., moments before the 5:20 p.m. bottom.
That sequence - heavy leverage, whale positioning, and cascading liquidations - mirrors past market breakdowns, where thin liquidity and panic amplify downside pressure.
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Binance to compensate users after technical snag during $19B market crash
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Beyond $19B: What might explain the gap?
Experts suggest the reported $19B figure reflects only on-exchange, tracked derivatives data, missing broader deleveraging effects. Possible reasons include:
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Limited coverage: Major dashboards exclude OTC and off-exchange liquidations.
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Exchange throttling: API slowdowns during peak volatility undercount forced unwinds.
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Definition drift: Some sources count only derivatives, excluding collateral sales or basis trade liquidations.
Related: What is blockchain? Explained
Market steadies but trust rattles
As of Oct. 11, the global crypto market cap hovered near $3.8 trillion, with Bitcoin back above $110,000 and Ether at $3,800.
Yet market makers warned of "aftershock conditions" - thin books, unstable funding, and lingering fear.
If the real liquidation total indeed approached $400B, it raises deeper questions about data transparency, exchange dominance, and whether the "trustless" ecosystem is truly ready for its next systemic stress test.
This story was originally reported by TheStreet on Oct 12, 2025, where it first appeared in the Trading News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
