Crypto fear spikes as market reels from Trump tariff fallout
-O9S5Ybe2.png "Crypto fear spikes as market reels from Trump tariff fallout")
Crypto markets plunged in a wave of Trump panic — catapulting the Fear & Greed Index into “Extreme Fear” as mass liquidations and whale-level moves wiped out fortunes and left risk appetite in tatters.
Investor sentiment across digital assets has plunged to its lowest levels in months following the sharp sell-off triggered by President Donald Trump’s announcement of 100% tariffs on Chinese imports, which erased nearly $250 billion from crypto markets in a single day.
Early this morning, several altcoins on Binance experienced flash crashes exceeding 90%, with tokens such as IOTX momentarily dropping to zero, according to WuBlockchain. CoinGlass data recorded over $19.3 billion in liquidations within 24 hours, impacting 1.6 million traders globally.
On the Hyperliquid platform, losses were severe. According to on-chain researcher Conor Grogan, 1,010 traders lost more than $100,000, while 206 traders saw losses above $1 million. Another 358 accounts were reportedly wiped to zero, including one with over $19 million erased.
An additional controversy surrounds what appears to be insider trading activity, where positions were allegedly opened 30 minutes before the tariff announcement and closed for a combined profit of roughly $192 million. Wallet analysis suggests the accounts responsible were created the same day.
Early this morning, several altcoins on Binance experienced flash crashes exceeding 90%, with tokens such as IOTX momentarily dropping to zero, according to WuBlockchain. CoinGlass data recorded over $19.3 billion in liquidations within 24 hours, impacting 1.6 million traders globally.
On the Hyperliquid platform, losses were severe. According to on-chain researcher Conor Grogan, 1,010 traders lost more than $100,000, while 206 traders saw losses above $1 million. Another 358 accounts were reportedly wiped to zero, including one with over $19 million erased.
An additional controversy surrounds what appears to be insider trading activity, where positions were allegedly opened 30 minutes before the tariff announcement and closed for a combined profit of roughly $192 million. Wallet analysis suggests the accounts responsible were created the same day.
Market observers also pointed to large-scale institutional and political entanglements. World Liberty Financial (WLFI) - a venture associated with Trump’s broader financial ecosystem - was reported by Lookonchain to have spent $10 million USD1 acquiring 55.69 million WLFI tokens at an average of $0.18, now sitting on an unrealized loss of about $2.85 million as prices continued to slide.
Crypto personalities added to the cascade of reports. @machibigbrother, a well-known Hyperliquid trader, saw his account drop from a +$43.64 million profit to –$12.28 million, leaving only $130,000 after repeated liquidations. Whales on Binance and Hyperliquid were forced to close massive long positions as collateral values collapsed.
Across social and derivatives platforms, sentiment indicators echoed the panic. The Crypto Fear & Greed Index dropped into Extreme Fear territory, signaling widespread risk aversion. Funding rates on perpetual futures turned deeply negative, and open interest across exchanges sharply contracted as traders retreated from leverage.
Crypto personalities added to the cascade of reports. @machibigbrother, a well-known Hyperliquid trader, saw his account drop from a +$43.64 million profit to –$12.28 million, leaving only $130,000 after repeated liquidations. Whales on Binance and Hyperliquid were forced to close massive long positions as collateral values collapsed.
Across social and derivatives platforms, sentiment indicators echoed the panic. The Crypto Fear & Greed Index dropped into Extreme Fear territory, signaling widespread risk aversion. Funding rates on perpetual futures turned deeply negative, and open interest across exchanges sharply contracted as traders retreated from leverage.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
