A recent crypto flash crash in October 2025, triggered by excessive leverage and amplified by geopolitical tensions, resulted in a staggering $560 billion wiped out from the market. This event has reignited calls for regulatory oversight in the cryptocurrency industry. The sudden surge in leverage led to widespread liquidations, particularly impacting altcoins and DeFi tokens, exacerbating losses already incurred. Key analysts like Charlie Erith view this as a necessary correction driven by excessive leverage levels. While Bitcoin’s performance provided some stability during the chaos, other cryptocurrencies suffered significant downturns. The crash underscored the vulnerabilities of cryptocurrency markets to such extreme volatility.