One tweet triggers ~$19 billion crypto liquidation / flash crash

Headline: “One tweet crash” (by Donald Trump’s tariff threat)
Published: ~October 10, 2025 Axios
Key points:

  • A tweet from President Trump threatening 100% tariffs on Chinese goods caused a cascading reaction: ~$19 billion in crypto positions liquidated, especially leveraged trades. Axios
  • Altcoins like SUI dropped ~70%, SOL ~40%, and Bitcoin around 15% (to ~$107 K) before a partial rebound. Axios
  • Shows the interplay between traditional geopolitical/economic moves and crypto markets — where tweets/announcements can swiftly ripple through the market.
    Why it matters:
  • Reinforces that despite the “decentralised” nature of crypto, external macro‑/political events and high‑leverage positions can cause large volatility.
  • For traders: signals caution on leverage, exposure to positions sensitive to global news, and the emergent risk of “social media / tweet” shocks.
  • For risk managers: demonstrates that crypto markets are still vulnerable to rapid sentiment shifts and are less insulated than some assume.
    What to watch:
  • Whether similar incidents occur when world leaders tweet about trade, regulation, sanctions, or crypto directly.
  • How risk‑management (liquidations, margin calls) evolves in crypto derivatives.
  • Whether institutional investors factor such “tweet risk” into models (akin to “black‑swan” for traditional assets).

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