What a night for the market. The latest crypto crash has become one of the most severe in digital asset history, erasing nearly $19.37 billion in leveraged positions within 24 hours and briefly causing the Ethena USDE depeg.
Although the stablecoin has since returned close to $0.99, the event revived memories of past collapses such as LUNA’s UST and FTX, reminding traders how fragile stability can be in extreme market conditions.
EXPLORE: 15+ Upcoming Coinbase Listings to Watch in 2025
Nearly $20 Billion Liquidated in Record Market Rout
Data from Coinglass shows that out of the total $19.37 billion liquidated, around $16.85 billion came from long positions and $2.51 billion from shorts — the highest combined liquidation ever recorded in a single day. The massive unwind occurred as Bitcoin briefly dropped to $101,060, marking its lowest point of the year before recovering to around $111,904 at the time of writing.
The sell-off followed U.S. President Donald Trump’s statement that his administration plans to impose a 100% tariff on Chinese imports, reigniting concerns of a new trade war and driving investors toward traditional safe havens such as gold and Treasury bonds. Crypto markets, already under pressure from high leverage and thin liquidity, reacted with an abrupt and historic flush-out.
Altcoins and DeFi tokens were hit even harder, with Ethereum sliding below $2,400 and many mid-cap assets losing over 50% in value within hours. Analysts compared the scale of the liquidations to the LUNA collapse of 2022 and the FTX fallout of 2023, calling this one of the worst market resets ever recorded.
EXPLORE: Crypto Down But Solana Treasuries Expanding: 3 Best Solana Meme Coins to Buy
The Ghost of UST Still Looms – Ethena USDe Depeg Sends Token to $0.65 Before Swift Recovery
In the middle of the chaos, Ethena Labs’ yield-bearing stablecoin USDe, known as a “synthetic dollar”, briefly fell to $0.65 on Binance before regaining its peg. The Ethena USDE depeg alarmed traders due to USDe’s rapid rise as the third-largest stablecoin, currently valued at about $14 billion.
(Source: Binance)
Ethena Labs later stated that the token remained fully operational and over-collateralized throughout the event, continuing to process mints and burns. Binance confirmed it is conducting a full review of user liquidations and the sequence of events that led to the temporary price deviation.
Unlike fiat-backed competitors such as USDT or USDC, USDe maintains its stability through a derivatives-based hedging structure known as the basis trade, which combines spot crypto holdings with short futures positions to balance exposure. This model works when funding rates are positive, allowing the system to generate a steady yield.
However, when the market turns, those rates collapse — and so do returns. During this week’s downturn, funding on major exchanges hit its lowest level in over a year, testing the limits of Ethena’s model. The brief depeg reflected how sudden liquidity shifts can strain even well-designed mechanisms.
Still, the fact that USDe regained parity within hours has been seen as a partial validation of Ethena’s risk controls, in contrast to the total collapse of UST in 2022.
DISCOVER: 10+ Next Crypto to 100X In 2025
Bitcoin Attempts to Reclaim Key Level – Mixed Feelings as Traders Call It a Lifetime Chance to Buy the Dip
With the worst of the liquidation cycle now passed, Bitcoin is attempting to reclaim $113,500, a level that could open the door to a short-term relief rally if sustained. Yet market sentiment remains fragile as traders assess ongoing macro risks and lingering volatility across derivatives exchanges.
For Ethena, this episode served both as a warning and a milestone. The Ethena USDE depeg showed that even advanced yield-bearing stablecoins are not immune to market stress, but it also proved that a swift recovery is possible when collateralization and redemption systems hold.
As the market steadies around the $111,900 level for Bitcoin, attention turns to whether crypto can rebuild confidence after a day that now stands as the largest liquidation event in its history: a stark reminder that stability in decentralized finance remains a work in progress.
Bitcoin Hyper (HYPER) Presale Gains Momentum Amid Market Reset
Amid the volatility, Bitcoin Hyper (HYPER) has emerged as one of the few projects maintaining strong traction. The Bitcoin Layer-2 protocol recently surpassed $23 million in presale funding, adding $1 million in just three days.
The latest surge was fueled by both whale accumulation and retail inflows, with one large wallet purchasing over 62 million HYPER tokens, roughly $833,000 worth, within a week.
Designed to enhance Bitcoin’s scalability and transaction speed, HYPER integrates Solana Virtual Machine (SVM) technology for fast, low-cost execution. Its ecosystem aims to bridge Bitcoin’s store-of-value narrative with real-world usability — a theme increasingly relevant as investors seek protection from dollar debasement and expanding U.S. debt.
With roughly 4 hours left before the next presale price adjustment at $0.013095, Bitcoin Hyper continues to attract attention from traders positioning early for the project’s token generation event (TGE).
