Crypto analyst warns market crash wiped out $400B

Core Insights - The liquidation wave during the market meltdown on October 10 is estimated to be between $300 billion to $400 billion, significantly higher than the reported $19 billion [1][3][4] - The event is described as the largest liquidation in crypto history, with 1.6 million traders affected and a liquidation ratio of long positions to shorts at 7:1 [3][4] Group 1: Market Analysis - Crypto analyst Kelly Kellam suggested that the true scale of the crash could be as high as $400 billion, questioning the reliability of the "trustless – transparent" narrative in the crypto space [1] - An automated analytics account claimed that Binance's API throttling led to major underreporting of liquidations, capturing only 5% of actual events during the crash [2][3] - The Kobeissi Letter highlighted that the October 10 event was nine times larger than the previous record for liquidations in the crypto market [4] Group 2: Market Dynamics - The analysis indicated that Bitcoin experienced a $20,000 daily candlestick, resulting in a $380 billion swing in market capitalization, surpassing the valuations of many Fortune 500 companies [4] - Timeline analysis revealed that significant selling began before external events, with whale short positions emerging shortly before the market bottom, indicating a pattern of heavy leverage and cascading liquidations [5] Group 3: Data Discrepancies - Experts noted that the reported $19 billion figure likely only reflects on-exchange tracked derivatives data, failing to account for broader deleveraging effects in the market [7]