{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T20:11:57Z","timestamp":1786738317109,"version":"build-2736575974"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":11,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>On October 10, 2025 at 20:50 UTC, triggered by a Truth Social post announcing 100% tariffs on China, Bitcoin fell 12.6% in ten minutes on Binance. Using minute-level data from Binance and Bybit across spot, perpetual futures, and mark price feeds for BTC, ETH, and SOL, we document five stylized facts of cryptocurrency liquidation cascades: (i) futures led the crash, with the basis swinging $1,367 from-$534 to +$833 in eight minutes; (ii) volume surged 22\u00d7 baseline seven minutes before the price trough (t = 6.59, p &amp;lt; 0.001); (iii) SOL exhibited extreme futures-spot divergence (31.2% vs 17.8%, a 13.4pp gap-134\u00d7 larger than any of three comparison events); (iv) the mark price used for liquidation triggers undershot both spot and futures, creating a reflexive feedback loop absent in traditional equity markets; and (v) the intra-minute spread reached 6.79% (t = 5.81 vs comparison events, p &amp;lt; 0.001). Cross-exchange validation using Bybit confirms the crash was market-wide, with BTC lows differing by only 0.3% across venues. Cross-event comparison with three other crypto crashes confirms that October 10 was qualitatively different: a structural breakdown in the derivatives market. We develop a cascade model, compare to the 2010 equity Flash Crash, and propose three exchange design improvements.<\/jats:p>","DOI":"10.2139\/ssrn.6579278","type":"posted-content","created":{"date-parts":[[2026,4,20]],"date-time":"2026-04-20T16:23:01Z","timestamp":1776702181000},"source":"Crossref","is-referenced-by-count":0,"title":["Anatomy of a Crypto Cascade: Minute-Level Evidence from the October 2025 Crash"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","reference":[{"issue":"1","key":"ref1","doi-asserted-by":"crossref","first-page":"23","DOI":"10.1002\/fut.22050","article-title":"BitMEX bitcoin derivatives: price discovery, informational efficiency, and hedging effectiveness","volume":"40","author":"C Alexander","year":"2020","journal-title":"Journal of Futures Markets"},{"key":"ref2","article-title":"Banking in the shadow of Bitcoin? The institutional adoption of cryptocurrencies","author":"R Auer","year":"2022","journal-title":"BIS Working Papers"},{"issue":"1066","key":"ref3","article-title":"The market turbulence and carry trade unwind of August 2024","volume":"90","author":"R Auer","year":"2023","journal-title":"Bank for International Settlements"},{"issue":"6","key":"ref4","doi-asserted-by":"crossref","first-page":"2201","DOI":"10.1093\/rfs\/hhn098","article-title":"Market liquidity and funding liquidity","volume":"22","author":"M K Brunnermeier","year":"2009","journal-title":"Review of Financial Studies"},{"key":"ref5","article-title":"Bitcoin tumbles after Trump announces 100% tariff on China', 11 October. Archived snapshot via Wayback Machine","author":"Cnbc","year":"2025","journal-title":"CoinGlass"},{"issue":"5","key":"ref6","doi-asserted-by":"crossref","first-page":"1457","DOI":"10.1093\/rfs\/hhs053","article-title":"Flow toxicity and liquidity in a high-frequency world","volume":"25","author":"D Easley","year":"2012","journal-title":"Review of Financial Studies"},{"issue":"3","key":"ref7","doi-asserted-by":"crossref","first-page":"967","DOI":"10.1111\/jofi.12498","article-title":"The flash crash: high-frequency trading in an electronic market","volume":"72","author":"A A Kirilenko","year":"2017","journal-title":"Journal of Finance"},{"issue":"2","key":"ref8","doi-asserted-by":"crossref","first-page":"293","DOI":"10.1016\/j.jfineco.2019.07.001","article-title":"Trading and arbitrage in cryptocurrency markets","volume":"135","author":"I Makarov","year":"2020","journal-title":"Journal of Financial Economics"},{"key":"ref9","author":"Reuters","year":"2025","journal-title":"Trump announces 100% tariff on Chinese imports in rare earths retaliation"},{"issue":"2","key":"ref10","first-page":"153","article-title":"Decentralized finance: on blockchain-and smart contract-based financial markets","volume":"103","author":"F Sch\ufffdr","year":"2021","journal-title":"Federal Reserve Bank of St. Louis Review"},{"key":"ref11","article-title":"$20 billion crypto crash: what liquidations reveal about market integrity","author":"Solidus Labs","year":"2025","journal-title":"Solidus Blog"}],"container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T19:21:03Z","timestamp":1786735263000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6579278"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":11,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6579278","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}