Crypto Crash: How a Tweet Wiped Out $600B in 30 Minutes

The Trigger

• Event: Donald Trump posted a tweet about tariffs with China.
• Impact: Within 30 minutes, crypto markets lost $600 billion.
• Severity: Many coins lost almost all their value, some even 99%.

Worst Hit Coins

• Cosmos
• Ravencoin
• Both crashed almost completely but later recovered slightly.

Panic Spreads

• Investors rushed to safer options like gold.
• Sold off risky assets, including crypto.
• Polkadot, Dogecoin, and Cardano all saw big drops.
• Even the token for Pudgy Penguins NFT collection fell hard.

Binance's Response

• Paid $283 million to users who lost money.

Traders Profited

• One trader made over $190 million.
• Suspicions arose: Did the trader know about the tweet in advance?

Market Connection

• Cross-margin collateral: When one coin crashes, it can pull others down.
• Domino Effect: 16 million accounts were liquidated.
• One trader lost $44.5 million in gains.