Stablecoin USDe loses dollar peg amid liquidation chaos, deepening panic across trading platforms
The crypto market is crashing hard today, wiping out over $400 billion in value as the total market cap falls to $3.74 trillion. Bitcoin dropped to a low of $105,262 before a slight rebound, while Ethereum plunged over 16%, and many altcoins saw losses of up to 80-90% at their worst.
In one of the most violent sell-offs of 2025, more than $19 billion in leveraged positions were liquidated within hours, leaving traders stunned across the market.
Sudden U.S.-China Tariff Shock
The main trigger came late Friday when U.S. President Donald Trump announced on Truth Social that the U.S. will impose a 100% tariff on Chinese imports starting November 1.
He also warned of new export controls on key software. This unexpected move shook global markets, sending stocks and crypto into a sharp risk-off slide.
$19 Billion in Crypto Market Liquidations
The crash caused massive liquidations across crypto exchanges. In the past 24 hours, over 1.6 million traders were wiped out, with total liquidations reaching $19.31 billion, including $16.82 billion from long positions.
The biggest single liquidation happened on Hyperliquid, where an ETH-USDT position worth $203 million was closed. As panic spread, traders rushed to exit, and automated liquidation systems deepened the fall.
Stablecoin USDe Loses Its Peg
Adding to the chaos, the USDe stablecoin lost its dollar peg as institutions were forced to sell assets during the crash. This caused further liquidations and panic across leveraged trading platforms, making the sell-off even worse.
Altcoins Take Heavy Damage
The fall didn’t stop at Bitcoin. Other major altcoins were already overbought after strong capital rotation. Analysts had warned that the market was stretched and could fall quickly if bad news hit, which it did.
Meanwhile, Ethereum and other major altcoins such as Solana, XRP, and smaller meme tokens like Dogecoin and Shib saw drops between 16% and 40%, as retail traders rushed to sell.
Despite the crash, analysts say the long-term setup remains solid. Global liquidity is expanding, and Bitcoin ETF inflows are still rising.
For now, Bitcoin holding above $110,000 is seen as the key level to watch. If it holds, bulls could soon make a comeback.
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