Record Liquidations Hit Crypto Amidst Tariff Shock

Crypto markets experienced a dramatic crash on Friday, with over $16.7 billion in long positions wiped out as investors reacted to President Trump’s announcement of 100% tariffs on Chinese goods. This unprecedented liquidation event saw nearly 1.6 million traders forced to liquidate their holdings, fueled by an extreme 7:1 long-to-short ratio and a late surge in selling pressure. The Kobeissi Letter highlighted that whales had already established significant short positions before the crash, setting off a chain reaction of massive liquidations that overwhelmed market depth.