Real Losses Were Much Lower Than $19B Despite Massive Crypto Liquidations
Expanding on his comments, Udi Wertheimer explained that many traders were misunderstanding the meaning of large-scale liquidations.
“You have $100 in your account and open a $2,000 long position. If that position gets liquidated, you only lose your $100—not $2,000,” he said. “People seem to think $19 billion in liquidations means $19 billion in real losses, but it’s not even close.”
Wertheimer’s example helped illustrate how leveraged trading amplifies liquidation numbers without representing equivalent cash losses. His clarification gained traction across the crypto community, easing some of the panic that followed the massive market sell-off.
The October 10 crypto market crash may not have been as devastating as initial headlines suggested. Analysts now estimate that real losses amounted to just 5% to 15% of the widely reported $19 billion in liquidations—indicating the impact was far less severe than feared.
Speaking to Cryptonews, Sam Seo, chairman of the Kaia DLT Foundation, estimated that the actual capital lost was likely between $950 million and $2.85 billion—just a fraction of the headline figure.
The sell-off, described as the largest liquidation event in crypto history, saw more than $19 billion in leveraged positions wiped out in a single day. The sudden cascade hit major exchanges as highly leveraged trades were automatically closed, sending Bitcoin plunging to a five-month low of $104,000. According to data from CoinGlass, around 1.6 million traders were liquidated within 24 hours.
“The remaining 85–95% was simply phantom leverage—synthetic exposure that was rapidly unwound,” Seo explained.
He further warned that excessive leverage continues to amplify market volatility without representing real money at risk.
“The real damage is the evaporation of liquidity and the severe blow to market confidence that follows,” Seo added. “It reveals an ecosystem that is still prioritizing speculative amplification over stable, utility-driven growth.”
Trump’s China Tariff Threat Sparks $19B Crypto Sell-Off
The October 10 liquidation wave was reportedly triggered by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports, set to take effect on November 1. The move followed reports that Beijing had imposed new restrictions on rare earth mineral exports, reigniting trade tensions between the U.S. and China.
The announcement sent shockwaves through global markets, and the crypto sector was hit especially hard. Bitcoin tumbled, while Ethereum (ETH), BNB, XRP, and Solana (SOL) all fell between 15% and 20%. Some lesser-known altcoins plunged as much as 80% as panic spread across social media and trading platforms.
Crypto 2025: XRP and HBAR Lead the Charge with Big Gains and Upbeat Breakouts
Amid the chaos, veteran Bitcoin developer Udi Wertheimer stepped in to calm fears, reminding traders that liquidations don’t equal direct losses.
“I don’t know who needs to hear this,” Wertheimer wrote on X (formerly Twitter). “But [$19 billion] in liquidations doesn’t mean people lost [$19B]. It means that [$19B] worth of leveraged positions were forced closed.”
His post helped clarify the difference between liquidation volume and actual capital loss, which many traders had confused during the market panic.
Analyst Clarifies Misconceptions Around $19B Liquidations
Expanding on his earlier comments, Wertheimer further explained how leverage works in crypto trading.
“You have $100 in your account and open a $2,000 long position. If that position gets liquidated, you only lose your $100—not $2,000,” he said. “People seem to think $19 billion in liquidations means $19 billion in real losses, but it’s not even close.”
EUROPEAN AUTHORITIES TO EXPAND REGULATORY CONTROL OVER CRYPTO SECTOR
His clarification helped illustrate how leveraged trading magnifies liquidation figures without representing equivalent financial losses.
Wertheimer’s remarks gained traction across the crypto community, helping to ease some of the panic and providing a clearer understanding of how leverage — not direct capital loss — was responsible for the shocking $19 billion headline figure.
The Bottom Line
While the October 10 crash was a historic event for crypto markets, experts agree that the true scale of financial losses was far smaller than reported. The episode highlights the risks of excessive leverage, as well as the need for a shift toward more sustainable, utility-driven growth in the digital asset ecosystem.
ETHEREUM CLIMBS BACK TO $4,700 AS BULLISH MOMENTUM STAYS STRONG
Despite short-term volatility, market fundamentals remain intact—and with renewed clarity on what actually happened, investors are now better equipped to navigate crypto’s complex, fast-moving landscape.
