Crypto Crash Erases $500 Billion, Exposing Leverage Risks

A dramatic cryptocurrency crash in October 2025 wiped out a staggering $500 billion in value within hours, bringing into focus the risks associated with leverage and impacting major exchanges like Binance. The event highlighted vulnerabilities in market structures, raising concerns about operational risks, information asymmetry, and its potential impact on Bitcoin and Ethereum – two of the industry’s most significant players.