The recent report from The Kobeissi Letter highlighted a moment that has drawn serious attention across crypto 1 just 30 minutes, XRP saw a severe contraction in market capitalization, dropping from relatively $161 billion to roughly $80 2 occurred during a broader market downturn, but the scale and speed of XRP’s decline set it apart and raised questions about market structure and trading 3 was not a case of gradual movement or sentiment-driven 4 compression of value within such a short window suggests a technical trigger rather than a natural shift in 5 pushed market participants to investigate whether aggressively leveraged positions contributed to the collapse and whether risk controls were inadequate in managing such 6 was an unprecedented liquidation event: Amid the crypto crash yesterday, $XRP erased a whopping -50% of its market cap in 30 7 4:50 PM ET, $XRP was worth $161 8 5:20 PM ET, $XRP was worth $80 9 happened to XRP? 0 10 — The Kobeissi Letter (@KobeissiLetter) October 11, 2025 Leverage and Liquidation Pressures The most discussed factor behind the event has been forced 11 markets where leverage is high, a sharp price move can trigger automatic position closures, accelerating selling pressure and amplifying 12 appears to have experienced precisely that dynamic, where liquidation engines pushed prices down faster than liquidity could 13 the crypto market was under collective strain, XRP’s motion was notably 14 led some to attribute the collapse to systemic leverage unwinding rather than organic 15 serves as a reminder of how vulnerable major assets remain to rapid dislocation when overexposure goes 16 Response and Defensiveness Reactions to the incident showed strong sentiment among XRP watchers and 17 participants focused on leverage as the core issue, arguing that excessive risk among traders, not external factors, caused the abrupt 18 position was clear: crypto markets are often destabilized from within by speculative 19 expressed frustration at the focus on XRP specifically, pointing out that multiple assets suffered heavy losses in the same 20 this perspective, XRP was highlighted not because it was uniquely responsible, but because it is often isolated for scrutiny during broader 21 are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Effect on Market Integrity This event reinforces ongoing concerns about the reliability of market infrastructure in crypto trading.
A major asset losing half of its market capitalization in half an hour underscores the absence of mechanisms designed to slow extreme moves, such as circuit breakers commonly found in traditional 22 exposes the fragility that accompanies high leverage, thin liquidity at critical moments, and the lack of coordinated risk 23 investors observing this event will likely question the stability of environments where such volatility can occur without 24 participants are also reminded that markets can move at a pace beyond manual reaction, driven entirely by automated systems responding to cascading 25 attention returns to recovery and stabilization, the focus will inevitably shift to how exchanges and platforms intend to address these 26 improved safeguards, similar episodes remain 27 : This content is meant to inform and should not be considered financial 28 views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s 29 are advised to conduct thorough research before making any investment 30 action taken by the reader is strictly at their own 31 Tabloid is not responsible for any financial 32 us on X , Facebook , Telegram , and Google News
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