Over 1.5 Million Traders Liquidated as Trump’s Tariff Decision Triggers Massive Crypto Market Sell-Off

The global crypto market faced intense pressure after President Donald Trump announced retaliatory tariffs on Chinese imports, resulting in widespread liquidations across major exchanges. More than 1.5 million traders saw their positions wiped out within 24 hours, according to CoinGlass data.

Besides the massive losses, the market’s open interest fell sharply by $9.55 billion, signaling panic among leveraged traders. About $8 billion worth of long positions and $1.55 billion in shorts were liquidated, with Bitcoin and Ethereum leading the downturn.

Bitcoin dropped nearly 8.7 %, erasing $1.37 billion in leveraged bets, while Ethereum followed with $1.26 billion in forced closures. The largest single liquidation occurred on HTX Exchange, where $87.53 million in BTC/USDT positions vanished in one order.

Tariffs Spark a Global Market Shock

Trump’s decision to impose 100 % tariffs on all Chinese imports sent shockwaves through the broader financial market. His remarks came after China’s Ministry of Commerce announced export restrictions on products containing rare earth elements.

Consequently, almost every major token experienced steep double‑digit declines. Bitcoin plunged from over $122,000 to nearly $113,600 within hours and briefly fell below $102,000 later in the evening. The total crypto market capitalization slipped by over nine percent to $3.8 trillion.

Moreover, the uncertainty around U.S.–China relations deepened after Trump reportedly canceled a meeting with President Xi Jinping. However, he later signaled a willingness to revisit talks if Beijing reversed its export decision before November.

According to CoinGlass, Friday’s crash could mark the largest liquidation event in crypto history by dollar value. Many analysts pointed to panic‑driven leverage unwinding as the primary factor behind the sharp correction.

Meanwhile, one trader on Hyperliquid reportedly profited around $190 million after shorting Bitcoin and Ethereum before the downturn. Crypto analyst @mlmabc noted that the whale’s actions might have amplified the sell‑off’s magnitude across exchanges.