BLACK FRIDAY: WHAT HAPPENED?

Summary from the TLDR Crypto newsletter

Mysterious traders opened massive short positions on Hyperliquid 30 minutes before Trump's 100% China tariff announcement on October 10, profiting $192 million as BTC crashed from $117k to $104k in 20 minutes while altcoins suffered catastrophic losses with ATOM nearly going to zero, Ethena dropping 80%, and SOL falling 40%. Open interest cratered over 50% across the board from $67 billion to $33 billion for BTC, $38 billion to $19 billion for ETH, and $43 billion to $31 billion for alts, forcing exchanges to deploy Auto-DeLeveraging that closed profitable short positions to fill liquidation holes with Lighter being the only major exchange avoiding ADL though experiencing multi-hour outages. DeFi protocols processed record liquidations, including AAVE's $180 million and Morpho's ~$100 million without bad debt, while USDe depegged to $0.62, USDT spiked to 1.006 premium, and onchain prices disconnected from reality with Rabby and DeBank stopping transactions for tens of thousands while some users received absurd fills on BNB and wETH through Cowswap at prices unavailable on CEXs.