Crypto's Black Friday Was Its Largest Liquidation Ever. What the Hell Happened? - Ep. 922 from Unchained

Crypto's Black Friday Was Its Largest Liquidation Ever. What the Hell Happened? - Ep. 922

55 minutes Posted Oct 12, 2025 at 5:30 pm.

Introduction

What markets looked like in the hours before the crash

Whether traders on Hyperliquid knew the tariff tweet was coming

Why altcoins plunged up to 95% and how market makers amplified the move

How auto-deleveraging kicked in—and why it mattered

How DATs created hidden leverage that made the system fragile

How perps DEXes and CEXes responded differently to the meltdown

Was it a coordinated attack—or just market mania?

What happened to smaller market makers when liquidity vanished

How the USDe depeg on Binance triggered cascading liquidations

Why Ethena “managed it well” and why exchanges don’t ADL their positions

What caused the USDe “depeg”

How infrastructure failures made price feeds unreliable

What perps exchanges need to change going forward

Why Diogenes thinks this kind of crash will happen again—and worse

The “extraordinary rights” LPs hold on exchanges

How traders should decide where to trade after this

A rumor about how much Jump lost

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Show notes

When Trump tweeted about 100% tariffs on China, crypto collapsed — $19 billion in liquidations in just hours.

Altcoins plunged 95%, exchanges froze, and stablecoins depegged. In this special episode, Diogenes Casares, founder of Klyra Protocol, joins Laura to break down the chain reaction: what really caused the crash, whether insiders knew it was coming, and how infrastructure failures and extreme leverage turned a policy tweet into crypto’s Black Friday.

Thank you to our sponsor, ⁠Aptos⁠!

Guest:

Diogenes Casares, founder of Klyra Protocol and advisor at Patagon Management

Links:

Diogenes’s article on X: "Black Friday: What Happened?"

Jordi Alexander on "What happened?

Stani Kulechov on Aave’s performance

Binance co-founder’s statement

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