$19B Crypto Crash: Binance, Wintermute, and Trump Behind October 10 Market Collapse

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October 10, 2025, will be remembered as one of the harshest days in crypto history, with over $19 billion liquidated in a single day. Many blamed politics, strict regulations, or market fears, but the truth tells a very different story.

As panic spread, attention turned to Binance, the market maker Wintermute, and even U.S. President Donald Trump, each allegedly playing a part in the market’s rapid collapse.

Wintermute: Market Maker’s Fast Exit

According to crypto trader Hanzo , a Wintermute, a leading algorithmic trading firm and one of Binance’s biggest liquidity providers, moved a staggering $700 million into Binance just hours before the crash, including $200 million in Bitcoin alone.

This massive shift went largely unnoticed, but it quietly set the stage for chaos. As traditional markets stumbled, crypto followed. On Binance, order books suddenly emptied. Walls of support vanished, leaving only a free fall waiting to happen.

Binance: Margin Chaos & Exchange Failures Worsen Losses

Adding to the confusion, market experts like Martin Hiesboeck from Uphold claimed the crash stemmed from a targeted exploit in Binance’s Unified Account margin system. Assets like USDe, wBETH, and BNSOL were manipulated, causing nearly $1 billion in forced liquidations.

On-chain analysts and Colin Wu reported that USDe prices on Binance fell to $0.65, while on other platforms, it stayed above $0.90.

Further exchange’s technical failures made it worse: stop and limit orders froze, only liquidations went through, and even low-leverage traders lost big. Between 23:00 and midnight, thousands of Bitcoins were sold in minutes.

At $108,000, liquidity providers stopped defending prices, and some altcoins pushed down by 80%. This crash showed the real risks of centralized exchanges, system flaws, manipulations, and frozen orders can turn a market dip into total destruction.

Donald Trump: 100% Tariff On China

Meanwhile, the timing of President Trump’s announcement of 100% tariffs on Chinese imports poured gasoline on an already fragile market. Stocks dipped first, followed by a massive selloff in crypto.

Some traders even accused Trump-linked entities of offloading tokens ahead of the news, suggesting potential insider moves.

The crash has reignited concerns about transparency, exchange stability, and the risks of centralized control in crypto markets.