The post Binance Leverage Fueled $19B Liquidations appeared on BitcoinEthereumNews.com.

$19B in crypto positions were liquidated on Oct 10, with 70% erased in 40 minutes amid heavy leverage. Mike Novogratz said excess leverage on Binance triggered cascading forced liquidations. The Oct 10 selloff was driven by margin calls and derivatives unwinds, not macro news. A $19 billion liquidation event shook the crypto market on October 10, with most losses occurring within minutes. Galaxy Digital CEO Mike Novogratz attributed the sharp decline to excessive leverage, particularly on Binance. He said the selloff was largely driven by forced liquidations rather than broad macroeconomic factors. $19B Liquidation Unfolded Within Hours Traders liquidated approximately $19 billion in crypto positions within 24 hours on October 10. About 70 percent of those liquidations occurred in roughly 40 minutes. The speed of the move drew attention across trading desks and exchanges. NOVOGRATZ: BINANCE LEVERAGE HELPED TRIGGER THE $19B WIPEOUT Mike Novogratz just weighed in on the October 10 liquidation event — $19B wiped in 24 hours, with 70% of it happening in roughly 40 minutes. His view? Binance leverage played a major role. According to Novogratz,… pic.twitter.com/XyIh2fuxde — CryptosRus (@CryptosR_Us) February 15, 2026 Liquidation data showed a rapid unwinding of leveraged long positions. As prices declined, margin calls increased and automated systems triggered further selling. This created a feedback loop that intensified volatility. Derivatives markets often drive such events because traders use borrowed funds. When prices move sharply against leveraged positions, exchanges close trades to limit losses. This process can accelerate price swings. Novogratz Points to Binance Leverage Mike Novogratz said leverage on Binance played a central role in the event. He stated that excessive borrowing amplified the downside move. According to him, leverage did not only affect retail traders but also market makers. “When leverage stacks up in one direction, it doesn’t take much to tip…

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Filed under: News - @ February 15, 2026 11:21 am