$19 Billion Bitcoin And Crypto Wipeout: What Caused The XRP Price To Crash 50% In A Single Candle?

The cryptocurrency market has suffered from a Devastating damage worth $19 billion XRP and Bitcoin (BTC) experienced a brutal sell-off that shocked traders around the world. Within minutes, XRP had wiped out more than 50% of its value. dropping to $0.77 before partially recovering, recording one of its largest intraday losses in history. While initial reports blamed political tensions following US President Donald Trump’s sudden announcement Tariffs on Chinese importsData now suggests that the crash was exaggerated by a major glitch in Binance’s internal pricing system, and other contributing technical factors.

The motivating factors behind the collapse of XRP prices and the collapse of cryptocurrencies and Bitcoin

Between October 10 and 11, XRP was launched Experienced violent Flash crash on Binancefalling by more than 54% in one 30-minute candle. In less than 24 hours, more than 1 million traders were liquidated as well. This unprecedented decline came during what analysts are witnessing now Contact “The worst cryptocurrency liquidation event in the history of cryptocurrencies,” with approximately $19.3 billion of open positions wiped out in a single day.

At first, it was a lot of blame wave In Trump’s announcement about 100% tariffs on Chinese technology importswhich sparked a wave of panic across global risk assets. However, the collapse of XRP and the broader market went beyond normal macroeconomic-driven fluctuations. On-chain analysts tracking The sequence led to a $60 million spot market dump on Binance, which took off Internal pricing defect. Binance’s oracle system, which sets the values ​​of collateral such as wBETH, BNSOL, and USDe, has temporarily failed, potentially leading to forced liquidations across XRP and other major crypto assets.

This mispricing by Oracle allegedly turned a $60 million order into a $19 billion loss. XRP, as one of the most widely used assets on Binance, absorbed a significant amount of impact as margin calls liquidated thousands of positions within minutes. There was reportedly a whale open $1 billion in short positions just before Trump’s tariff announcement, adding more uncertainty and fuel to the collapse. Binance later confirmed the abnormal pricing and paid $283 million in damages, but the damage to XRP and the broader market has already been done.

Dive deeper into the market collapse

Analysts He says The root cause of the $19 billion cryptocurrency market crash is Binance’s “unified computation” system, which prices collateral using internal data rather than a decentralized oracle. Between October 6 and 14, Binance was transitioning to oracle-based pricing, creating an exploitable 8-day gap. During that period, coordinated actors reportedly dumped between $60 million to $90 million in USD exclusively on Binance, sending its price soaring to $0.65 while remaining near $1 on other exchanges.

This artificial cancellation within the Binance system sparked widespread panic, with attackers said to be holding $1.1 billion in Bitcoin and Ethereum short trades on decentralized exchanges, and profiting off about $192 million as prices fell. Analysts pointed this out Athens USDe It remained fully collateralized on all other exchanges, proving that the issue stems from Binance’s infrastructure, not the stablecoin.

A combination of technical flaws, Alleged manipulationThe fear caused by tariffs has turned banned exploits into a market-wide disaster. Despite the chaos, analysts remain cautiously optimistic about it XRP recoveryanticipating a strong rise to new ATHs soon.

Featured image from Adobe Stock, chart from Tradingview.com

Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.