Market Records Liquidation Dubbed as “Worst in Crypto History,” Experts Weigh in on Way Forward ⋆ ZyCrypto

Crypto

Market Records Liquidation Dubbed as “Worst in Crypto History,” Experts Weigh in on Way Forward ⋆ ZyCrypto

The crypto market suffered what many analysts are calling the most severe liquidation event in its history, with altcoins plunging to unprecedented lows and billions wiped from open interest within hours.

Crypto investor and commentator Lark Davis described the day‘s collapse as “Worse than FTX, worse than 2018,” noting that several altcoins including Cosmos’ ATOM token.

Market analyst Miles Deutscher attributed the massive selloff to a of hidden leverage and overextended risk exposure. He explained that although the market didnt appear euphoric, leverage had quietly built up through traders and even major funds seeking perpetual DEX airdrops.

The trigger, he noted, came from unexpected tariff news that hit while equities were already overbought, leading to an and the collapse of several overleveraged positions.

Despite the carnage, Deutscher emphasized that this was advising traders to prioritize risk management and avoid excessive leverage.

Meanwhile, liquidity near $105,000 before rebounding to around $113,000.

the brand said, maintaining that its macro outlook remains intact unless key technical levels break.

While the full extent of the damage is still unfolding, most experts agree the wipeout is a harsh reminder of cryptos volatility and the unforgiving consequences of hidden leverage.