Unchained Crypto's Black Friday Was Its Largest Liquidation Ever. What the Hell Happened? - Ep. 922
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Oct 12, 2025 
Diogenes Casares, founder of Klyra Protocol and experienced crypto analyst, joins to dissect the dramatic crypto crash that wiped out $19 billion in hours. He discusses how Trump's tariff tweet precipitated widespread liquidations and why altcoins plummeted by up to 95%. Diogenes explains the role of auto-deleveraging and flaws within exchange infrastructures that compounded the chaos. He also explores the potential for insider knowledge among traders and reflects on the industry's need for structural change to prevent future meltdowns.
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Whales Opened Shorts Before The Tweet
- Diogenes observed large new Hyperliquid accounts opening huge short positions right before the announcement.
- He suspects someone with inside knowledge or early telegraphed intent caused coordinated shorting across venues.
Perps, Not Spot, Sent Alts To Zero
- Altcoin collapses happened mostly on perpetual order books, not spot markets.
- Illiquid perp order books and a handful of market makers failing let some alt prices fall near zero.
ADL Reshuffled Gains And Losses
- Exchanges used widespread auto-deleveraging (ADL) when liquidity vanished, forcing winners to be closed.
- ADL reshuffled losses and capped winning traders' P&L because exchanges couldn't safely internalize risk.