Carmelo_Alemán
The Real Data Behind the October 10 Crash: An On-Chain Perspective
Friday’s headlines shook the crypto ecosystem: media outlets and social networks echoed the figure of $19B in liquidations, labeling it as the largest in history. Fear took over the market and the narratives spread rapidly. However, the reality is different. It was not the largest liquidation ever recorded. To understand why, we must first define what a liquidation is. A liquidation occurs when a leveraged trader loses their margin because the asset’s price moves against them. The exchange automatically closes the position to prevent further losses, executing a forced sale. In simple terms, the market liquidates the trader when their collateral no longer covers the losses. The $19B figure reported by Coinglass reflects liquidations of leveraged positions—operations using borrowed funds from the exchange—but it does not represent actual capital losses. Leverage magnifies both gains and losses: when the price moves favorably, profits multiply; when it moves unfavorably, the liquidation risk increases exponentially. According to On-Chain data, real trader liquidations were far lower than $19B. Bitcoin saw long positions liquidated for $1.05B and shorts for $133.6M; Ethereum recorded $895M in long liquidations and $229.7M in short ones. In total, the combined liquidations on October 10 amounted to $2.31B. The real record remains April 18, 2021, with total liquidations of $3.09B: in Bitcoin, $2.265B in longs and $199.5M in shorts; in Ethereum, $578.2M in longs and $48.7M in shorts. In conclusion, the reported $19B corresponds to the nominal value of leveraged positions, not actual trader losses. On-Chain data shows a strong correction—but far from the historic Covid-era event. Signed by Carmelo Alemán, Verified On-Chain Analyst at Cryptoquant📲 Connect with me:♦️ X: @oro_crypto♦️ YouTube: OroCryptoCanal♦️ Email: [email protected] collaborations, questions, or feedback—feel free to reach out!