mahmood0526

After October 1, something clearly shifted in the crypto market and the data confirms it. On that single day, the largest liquidation in crypto history took place, with nearly 20 billion dollars wiped out in less than 24 hours. From October 1 until now, total liquidations have crossed 41 billion dollars, which is extraordinary for this period, especially since there was no major macro shock, no protocol failure, no exchange crash, and no black swan event.
Meanwhile, the stock market recovered. The S&P 500 reached new highs and NVIDIA delivered strong results, yet the crypto market never stabilized. There was no bounce, no relief rally, no market rotation. Instead, the chart shows a straight downward line with forced selling, brief pauses, and then more selling.
Daily liquidation data reveals the same pattern. Every recovery attempt is crushed by a new wave of long liquidations. Even on days when global markets are stable or green, crypto suddenly wipes out between 100 million and 1 billion dollars in leveraged positions.
Such repetitive moves usually point to one of three possibilities. Either a major institution is unwinding its positions, or large trading firms are undergoing structural deleveraging, or thin order books are creating systematic liquidity gaps.
The real issue is that no one has openly explained what happened. No major fund gave a statement, no clarification was offered, and no evidence showed who triggered the October 10 cascade. On that day, there was nothing in the macro environment that could justify such a massive liquidation wave. There was no ETF decision, no regulatory shock, no key economic data, and no on-chain failure. Yet the sell-off distorted the market structure in a way that has continued for 45 days straight.
Traders were wiped out, open interest collapsed, and liquidity dried up even in major trading pairs. Even now, the market shows abnormal liquidations on minor moves, proving that the October 10 event caused internal damage that still has not been understood. Normally, after such a huge liquidation, the market retraces or at least stabilizes. But here, nothing of the sort happened. Selling appears continuous, organized, and controlled, as if one large institution or a few players are still reducing exposure.
The real question remains: who did this? Billions of dollars were liquidated, the market structure changed, retail investors suffered heavy losses, and yet no one knows who lost and who gained. When 41 billion dollars vanish in six weeks and 20 billion in a single day, the market deserves to know why.
This is exactly where the Digital Asset Market Clarity Act becomes crucial. The real problem is not just liquidation. The real problem is the absence of clear rules. The Clarity Act directly addresses these gaps by banning wash trading, giving the CFTC real-time monitoring authority, criminalizing spoofing and front-running, and requiring monthly audits and proof of reserves for every exchange serving US customers.
If these rules had already been in place, at the very least we would know who triggered the October 10 liquidation wave and what the actual cause was. The crypto market does not only need stability. It needs transparency.
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