Cryptocurrency Crash Insider: How Whale Liquidations Triggered a $380 Million Liquidation Wave

Behind the cryptocurrency crash, there are often large-scale manipulations by market participants. Recent price declines once again prove that the decisions of a few big players can have a profound impact on the entire market.

Market Status: Bitcoin and Ethereum Both Decline

According to the latest market data, Bitcoin is currently priced at $68.16K, down -3.75% in the past 24 hours; Ethereum has fallen to $1.97K, with a 24-hour drop of -4.34%. This crypto market plunge directly led to nearly $380 million in long positions being liquidated within 30 minutes.

This price drop was not driven by fundamental changes but was a precise market manipulation event. Insider sources in the crypto market reveal that a well-known whale played a key role.

Whale Trading: Large Liquidation During Weekend Liquidity Gaps

The identity of this whale is noteworthy—he is the same market participant who profited $200 million from short selling before the stock market crash on October 10. Over the past month, this whale has built long positions worth over $700 million, seemingly positioning for an upward trend.

However, during the weekend when liquidity was relatively low, this whale began to massively unwind his positions. In just 10 minutes, he liquidated over $65 million worth of Ethereum long positions. This massive sell order directly impacted market depth and became the trigger for the entire crash.

Chain Reaction: How Algorithmic Trading Ignited the Liquidation Wave

The whale’s liquidation activity immediately triggered algorithmic trading programs. These automated systems, upon detecting downward price signals, started selling off other long positions following the whale. In no time, a wave of liquidations spread, forcing many leveraged traders to be liquidated.

The rapid price decline further amplified the liquidation scale, creating a self-reinforcing negative feedback loop. This explains why such a huge amount of liquidations accumulated within just 30 minutes.

Market Questions: Foreseeing Risks or Buying on Dips?

This event has sparked deep market reflection. What does this whale’s operation really represent? Did he possess some insider information, anticipating upcoming risks and exiting early? Or was it purely opportunistic—exploiting weekend liquidity shortages to create short-term volatility and prepare for buying at lower prices?

Historically, this participant has successfully predicted major market turning points. The true intention behind this crypto crash may only be revealed by his next moves. Market observers are closely watching his subsequent trading behavior in an attempt to decode this whale’s true trading logic.