The October 10 crypto crash worn out practically $19 billion in leveraged positions inside hours, surprising each merchants and analysts.
In an unique BeInCrypto podcast, World Liberty Monetary advisor and Glue.Web founder Ogle broke down what actually triggered one of many largest single-day collapses in current crypto historical past.
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A Good Storm: A number of Components Converged
In response to Ogle, there was no single set off behind the sell-off.
“You don’t die from heart disease because you only ate a lot of burgers,” he stated. “It’s a thousand things that come together that cause catastrophes.”
He defined that the crash stemmed from a mix of liquidity shortages, over-leveraged merchants, and automatic sell-offs sparked by macroeconomic jitters.
“In those precipitous drops, the bids to purchase simply were not there. There’s just not enough people who are interested in buying even at lower prices,” Ogle famous.
He added that Donald Trump’s remarks on US–China relations amplified panic in algorithmic buying and selling programs, triggering a wave of automated quick positions that accelerated the decline.
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Liquidity Gaps and Over-Leverage Made It Worse
The advisor, who has been in crypto since 2012 and helped recuperate greater than $500 million from hacks, pointed to over-leverage on skilled exchanges as essentially the most damaging component.
Many merchants used “cross margin,” a system that hyperlinks all positions collectively — a design flaw that may wipe out whole portfolios when costs dip sharply.
“My personal belief is that over-leveraging in professional exchanges is probably the most important part of it,” Ogle stated. “It’s a cascade — if one position collapses, everything else goes with it.”
The Centralized Trade Dilemma
Ogle criticized the group’s continued reliance on centralized exchanges (CEXs) regardless of repeated failures.
He cited Celsius, FTX, and several other smaller collapses as reminders that customers nonetheless underestimate custody dangers.
“I don’t know how many more convincing events we need,” he stated. “It’s worth spending an hour to learn how to use a hardware wallet instead of risking everything.”
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Whereas CEXs stay handy, the long run lies in decentralized finance (DeFi) and self-custody options — an evolution even centralized gamers acknowledge.
“Coinbase has Base, Binance has BNB Chain — they’re building their own chains because they know decentralization will disrupt them,” he defined.
Playing Mindset and the ‘Gold Rush’ Mentality
Past technical failures, there’s a deeper cultural challenge plaguing the crypto area. Speculative greed. Ogle in contrast immediately’s meme coin frenzy and 100x buying and selling to the 1800s California gold rush.
“Most people who went there didn’t make money. The people selling shovels did. It’s the same now — builders and service providers win, gamblers don’t,” stated Ogle.
He warned that extreme hypothesis damages crypto’s picture, turning a technological revolution into what outsiders see as “a casino.”
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Remoted Margin Is Important
When requested for sensible recommendation, Ogle gave a transparent takeaway:
“If they take nothing else from this podcast, and they want to do perpetual trading, you must use isolated margin.”
He defined that remoted margin limits losses to a selected place, not like cross margin, which might liquidate a whole account.
“The very best suggestion I can give people is this — always trade isolated,” he emphasised.
General, the October 10 crypto crash was not attributable to a single failure. It was the inevitable final result of systemic over-leverage, low liquidity, and a speculative tradition that treats danger as leisure.
Till merchants be taught to handle danger and take self-custody significantly, crypto will hold repeating the identical errors — simply with bigger numbers.
