“Oct 11 Crash” First Anniversary: $19B Liquidation Warning Persists, Analysts Warn of Derivatives Leverage Risks

On October 10, CoinDesk noted the one-year anniversary of the "1011 flash crash," which triggered approximately $19 billion in leveraged liquidations across the crypto market. Analysts warn that the underlying structural risks behind this sudden dump persist. In October 2025, Bitcoin experienced a flash crash within days of setting a new all-time high above $126,000, plummeting from roughly $122,000 to $105,000 in a short span, triggering the mass liquidation of leveraged long positions.

Mark Connors, an analyst at Risk Dimensions, pointed out that recent short-term price movements remain highly influenced by derivatives such as perpetual contracts rather than on-chain data, and exchanges' bias toward high-leverage products means the risk of flash crashes has not been eliminated. Furthermore, the traditional four-year halving cycle has changed, with macroeconomic and political forces taking on a more critical role. Chris Sullivan, co-founder of Hyperion Decimus, advises traders to avoid excessive leverage, closely track open interest, funding rates, and market sentiment indicators, while long-term investors should withdraw assets from exchanges and adopt self-custody.