Crypto Leverage Wipes Out $19 Billion in October 2025 Sell-Off
Even traders who correctly call crypto direction can lose money as leveraged positions get liquidated during short-term volatility.
A short-term price move in the expected direction is not enough to protect a leveraged crypto position. During the October 2025 crash, roughly $19 billion in leveraged trades disappeared in less than 24 hours.
Leverage can amplify returns, but it also exposes positions to brief drawdowns that trigger liquidation before the trade can work. Costs such as fees and funding rates can further erode any eventual profit.
The piece examines who actually benefits from leverage, why traders continue to take the risk, and where the statistical edge lies.
Source: ForkLog