Key Notes
- The exchange will distribute $300 million in vouchers to users who lost over $50 and 30% of assets during the crash.
- Bitcoin plummeted from $122,000 to $104,000 following Trump’s tariff announcement, triggering the largest liquidation in history.
- An additional $100 million low-interest loan fund targets institutional users facing severe liquidity pressures from the event.
October 10 and 11 marked crypto history with the largest market crash measured by total liquidations, summing up to $19 billion erased from traders who got “rekt,” as different security guards failed, registering unprecedented losses to most cryptocurrencies, investors, and speculators.
In this context, Binance, one of the most affected markets during these recent liquidations, announced “an industry recovery and confidence rebuilding plan,” which the leading exchange is calling “The $400 Million Together Initiative.”
As announced on October 14, the leading exchange will distribute $300 million in token vouchers ranging from $4 to $6,000 each. Eligible users are those who incurred forced liquidation losses down to $50 across futures and margin trading during the two days of the crash, as long as these losses represent 30% or more of the user’s net assets in a snapshot before the liquidations took place.
Distribution is planned to start on October 15, 24 hours post announcement. Moreover, Binance will also provide $100 million for a low-interest loan fund to “institutional users severely impacted by this market fluctuation.”
“We expect this to inject momentum into ecosystem participants’ recovery, alleviate liquidity pressures, and maintain stable operations for ecosystem partners. Eligible VIP and institutional users can submit applications through their dedicated account managers. We will provide a fast response and maintain strict confidentiality,” the official announcement states.
Dark Friday: Largest-Ever Crypto Liquidation, $19B Rekt
The crypto market took a heavy hit on October 10, when President Donald Trump posted about imposing 100% tariffs on Chinese imports.
Bitcoin
BTC
$113 370
24h volatility:
1.3%
Market cap:
$2.25 T
Vol. 24h:
$86.78 B
dropped from $122,000 to as low as $104,000 in hours, while Ethereum
ETH
$4 134
24h volatility:
1.9%
Market cap:
$495.76 B
Vol. 24h:
$60.95 B
and smaller cryptocurrencies fell even harder, some by 30% or more. Zcash
ZEC
$244.1
24h volatility:
3.8%
Market cap:
$4.06 B
Vol. 24h:
$856.04 M
, for example, was one of the only assets ending the Dark Friday with a green candle as the shielded ZEC percentage grew, passing 27%, as Coinspeaker reported.
According to different sources, like Reuters, this sparked the largest liquidation event ever recorded, with more than $19 billion in leveraged positions wiped out across exchanges. Data from CoinGlass showed 1.6 million accounts affected, mostly longs betting on higher prices. Stablecoins like Ethena’s USDe briefly lost their peg on Binance, dipping to 65 cents amid technical glitches and low liquidity.
Analyst YQ detailed on X how market makers pulled back, creating a liquidity vacuum that turned a sell-off into a cascade. This led to auto-deleveraging on platforms like Hyperliquid, where over 6,300 wallets were hit, and Bybit, which reported $1.1 billion in short positions closed. YQ noted the withdrawal was timed, with liquidity returning only after the worst passed.
Dear friends, thx for long waiting.
Let’s go with Chapter 4: liquidity vacuum.
Today, I turn to perhaps the most critical yet underappreciated aspect: how market makers—the entities supposedly providing market stability—became primary catalysts in creating an unprecedented… https://t.co/PhtTWMHAqx— YQ (@yq_acc) October 13, 2025
This volatility echoes recent patterns. Again, on October 14, crypto liquidations reached $624 million as Bitcoin lost price support. Traders are now hedging more, with options activity rising. Binance aims to fuel this rising momentum with its disclosed recovery plan, injecting liquidity back into the market and reestablishing the market’s confidence.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vini Barbosa has covered the crypto industry professionally since 2020, summing up to over 10,000 hours of research, writing, and editing related content for media outlets and key industry players. Vini is an active commentator and a heavy user of the technology, truly believing in its revolutionary potential. Topics of interest include blockchain, open-source software, decentralized finance, and real-world utility.
Vini Barbosa on X