From Panic to Profit: How $19B in Liquidations Sparked the Next Rally

Markets just survived a $19 billion liquidation storm—and came out swinging.

In this issue, you'll see which coins led the comeback, how one "stable" coin proved its strength under fire, and why institutions are quietly buying the dip while everyone else's nerves are still shot.

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Market-Moving News — What This Means for You

Volatility didn't break crypto's conviction—it reset it.

Altcoins are rebounding, stablecoins are stress-testing live, and fund inflows are hitting new records even after the biggest wipeout of the year.

If you're wondering what to actually do with that, start here: how to trade the rebound without chasing, spot the stablecoin setups that held firm, and see where smart money flowed when fear peaked.

Markets

Cardano and Dogecoin Lead Crypto Rebound After $19B Liquidation Shock

The weekend started with chaos and ended with relief.

Bitcoin's flash crash on Trump's tariff news wiped out $19 billion in liquidations—the biggest one-day hit in crypto's history.

By Monday, the market had already started to heal. Washington and Beijing both toned down their rhetoric, calming traders who feared another trade war meltdown.

Altcoins Drive the Rebound

Altcoins took the lead as risk appetite returned. Cardano (ADA) and Dogecoin (DOGE) surged nearly 10% in 24 hours as traders bought back into discounted majors.

Bitcoin climbed 2.7% to around $114,600, while Ethereum (ETH) gained 8% to trade near $4,135.

Even ecosystem tokens like BNB and Solana (SOL) saw double-digit gains as liquidity trickled back in.

Leverage Burn, Confidence Restored

Traders called the selloff an "emotional reset" rather than a structural breakdown.

With ETF inflows strong and exchange reserves near cycle lows, conviction in the long-term trend remains high.

Over 6,000 wallets were liquidated on Hyperliquid alone, proving how leverage can amplify pain. But the "washout" also cleared weak hands, leaving a cleaner setup for the next leg up.

Take: The selloff burned leverage but not belief. If macro tensions stay contained, this reset could fuel the next rally—just size positions for volatility, not hope.

Stablecoins

Ethena's USDe Loses Peg in Flash Crash, Then Snaps Back Fast

Ethena's yield-bearing stablecoin, USDe, briefly lost its dollar peg on Binance, plunging to $0.65 amid Trump's tariff-driven liquidation storm.

Within minutes, it recovered to parity as Ethena Labs confirmed minting and redemptions stayed live.

More than $19 billion in crypto positions were wiped out across exchanges, pushing even robust systems to the limit.

Yet USDe's quick rebound showed its overcollateralized model held under stress.

Stress Test Passed—Barely

The stablecoin, offering a 5.5% yield via a delta-neutral basis trade strategy, stayed operational throughout the crash.

Ethena said unrealized profits from short positions during the selloff actually strengthened reserves.

Ethena's governance token ENA wasn't as lucky—it plunged 40% at the lows before trimming losses to about -25% over 24 hours.

Binance confirmed a review of affected accounts and possible compensation.

Confidence on the Line

Analysts noted that the peg slip was short-lived but psychologically damaging.

Aave and other DeFi protocols were largely shielded since they had USDe hardcoded at $1, avoiding forced liquidations.

Transparency and speed likely prevented panic from spreading further.

For a yield-bearing stablecoin under extreme conditions, surviving the world's largest liquidation event is no small feat.

Take: USDe's recovery showed technical strength but emotional fragility. It passed the stress test this time—yet investors should remember that "stable" doesn't always mean "immune."

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Funds & Flows

Crypto Funds Pull $3.2B Inflows Despite Friday's Flash Crash

Even as prices plunged, institutions kept buying. Crypto exchange-traded products (ETPs) attracted $3.17 billion in inflows last week, showing that big money didn't flinch.

Friday's crash triggered record volumes—$53 billion for the week and $15.3 billion on Friday alone.

Outflows were just $159 million, proving funds stayed calm through the chaos.

Bitcoin Leads, Altcoins Lag

Bitcoin funds drew $2.7 billion in inflows, pushing 2025 totals past $30 billion.

Ether (ETH) funds saw $338 million in net inflows but suffered the biggest single-day outflow—$172 million—during Friday's slide.

Total assets under management dropped from $254 billion to $242 billion as prices reset lower.

Altcoin products cooled sharply, with Solana (SOL) and XRP fund inflows down over 80% week-over-week.

ETFs Hold Their Ground

CoinShares' analysts called the slowdown "temporary caution" rather than a reversal. Hype around upcoming SOL and XRP ETFs remains strong, despite the macro noise.

ETF analyst Nate Geraci said at least 16 crypto ETFs await approval once the US government shutdown ends. Institutional capital looks ready to move as soon as the gates open.

Take: Pulling in $3.2 billion during a crash is no accident. Institutions are clearly rotating dips into entries—if you're waiting for calm to return, they may already be ahead of you.

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Future Forward

The real alpha isn't hiding in the charts—it's sitting on your calendar.

Conferences, airdrops, and token launches are where the next headlines get written before anyone else sees them coming.

Don't chase hype, track catalysts.

Mark the two events most likely to move your bag, set your alerts, and plan your "if-this-then-that" moves before the rest of the market even wakes up.

Crypto Conferences:

💎 Future of Finance Tokenisation Event 2025 (Oct 14, 2025)

💎 Quant Strats Europe 2025 (Oct 14, 2025)

💎 DC Fintech Week 2025 (Oct 14, 2025)

Upcoming Airdrops:

🎁 Matchain (MAT) Airdrop (Oct 19, 2025)

🎁 DFDV Staked SOL (DFDVSOL) Airdrop (Oct 23, 2025)

Upcoming Token Launches:

🚀 Lern360 (LERN) IDO on TrustFi (Oct 14, 2025)

🚀 EarnPark (PARK) Token Sale Tier 3 (Oct 15, 2025)

🚀 FacilPay (FACIL) IDO on Spores (Oct 16, 2025)

Which event are you most excited for? Let us know!

Crypto Know-How: What Is WazirX?

WazirX is one of India's biggest cryptocurrency exchanges, built to let people buy, sell, and trade crypto easily using local currency.

Think of it as India's bridge between traditional finance and the digital asset world.

It supports popular coins like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), along with its own token, WRX, which users can stake or use for fee discounts.

WazirX gained traction for its simple interface, quick trades, and strong presence in India's growing crypto scene.

In 2024, the platform suffered a $234 million hack, leading to a temporary shutdown and a long legal process to recover funds.

The Singapore High Court recently approved its restructuring plan, paving the way for repayments and a full relaunch.

WazirX's story is a reminder that security and transparency matter as much as innovation.

For users, it's also proof that even after major setbacks, a solid recovery plan—and a supportive community—can bring an exchange back to life.

Everything Else

• Singapore's High Court approved WazirX's restructuring plan after last year's $234M hack, clearing the way for user repayments and the exchange's relaunch in the coming months.

• Binance will compensate users hit by Friday's wrapped-token crash in wBETH, BNSOL, and USDe after system stress broke price alignment, with a new pricing model now in place to prevent repeats.

• Ethereum layer-2 tokens like Mantle, Arbitrum, and Immutable led the rebound after the $19B liquidation, with Mantle surging 31% thanks to Bybit integration and growing on-chain traction.

• On-chain sleuths linked the Hyperliquid whale controlling 100,000 BTC to former BitForex CEO Garrett Jin, whose past exchange collapsed amid fraud probes and wallet losses.

• Michael Saylor's Strategy added 220 BTC for $27.2M last week, bringing total holdings to 640,250 BTC as Bitcoin hit new highs before Friday's tariff-induced correction.