Hanba Longwang Attributes Market Crash to USDe Subsidy-Driven Loop Lending

The unexpected tariff remarks by Trump caused significant drops in Bitcoin, Ethereum, and altcoins, leading to $19.1 billion in liquidations and massive losses across the crypto market.

BTC

ETH

HYPE

187d ago

Summary

On October 11, 2025, global markets experienced a sharp downturn following Trump’s unexpected tariff comments, causing Bitcoin to fall to $101,500 and Ethereum to $3,373.67. Altcoins saw extreme drops of over 80-90%, with a total of $19.1 billion in liquidations. Over 1.6 million traders were affected, with the largest liquidation being a $203 million ETH long position on Hyperliquid. Opportunistic traders profited by shorting and exploiting USDe’s temporary depeg, while Ethena confirmed USDe’s safety and enhanced collateralization amid the turmoil.

Terms & Concepts

USDe: A stablecoin-like digital asset used as margin in crypto trading, subject to price stability risks and potential de-pegging.
De-pegging: The loss of parity between a pegged asset, such as a stablecoin, and its target value, which can cause volatility and liquidation risk.
Liquidation: The process of forcibly closing a trader's position due to a margin call, often occurring during sharp market movements or when an asset's value falls below a certain threshold.