The crypto world can turn upside down in a heartbeat, and that's exactly what happened on October 10, 2025. What started as a typical trading day quickly spiraled into chaos, with Bitcoin dipping below $101,000 and altcoins plunging even deeper. Billions in positions were wiped out, leaving traders scrambling. But was this just market jitters from big news, or something more sinister like a coordinated attack?

What Sparked the Chaos?

President Trump's announcement of an additional 100% tariff on all Chinese imports, set to kick in on November 1, 2025, sent shockwaves through global markets. Crypto wasn't spared—Bitcoin tumbled about 10%, while Ethereum, Solana, and XRP saw drops of 15% to 30%. According to reports, this led to over $7 billion in liquidations in under an hour, with some estimates climbing to $19 billion across the day, affecting more than 1.6 million traders Bitcoin's Flash Crash Sees $7B Crypto Liquidation.

But not everyone buys the "just trade war fears" narrative. Crypto commentator MartyParty pointed to a deeper issue: a potential systemic pricing glitch or even a manipulated oracle attack. In his tweet, he highlighted reports of DDOS (Distributed Denial of Service) attacks on major crypto platforms, a tactic he claims was used in similar events back in 2017 and 2020.

MartyParty shared a screenshot from CoinGlass, a popular derivatives data aggregator, confirming they were hit by a large-scale proxy attack—essentially a form of DDOS using proxies to overwhelm servers. CoinGlass resolved it quickly, but the timing raised eyebrows CoinGlass's official announcement. MartyParty's take? This was no accident but a "systemic collusion" to flush out open interest and force a market reset MartyParty's tweet.

For the uninitiated, oracles like Chainlink and Pyth feed real-world data, such as USD prices, into blockchain smart contracts. If they're compromised—say, through a DDOS flooding their networks—the prices can glitch, triggering cascading liquidations in perpetual contracts. MartyParty noted in an earlier post that blockchains themselves handled the volume fine; it was the centralized components that faltered.

How Meme Tokens Got Hammered

Meme tokens, the wild cards of the crypto space, took an especially brutal hit. These community-driven coins thrive on hype and leverage, making them prime targets for liquidation cascades. Many alts effectively "went to zero" in the wick, as one trader put it, with retail investors losing big on DeFi positions. Reports suggest long positions worth $16.6 billion were forced closed, dwarfing the $2.4 billion in shorts Altcoin Flash Crashes Indicating Second Wave of Tariff Plot Twists?.

If you're trading meme coins like DOGE, SHIB, or newer ones, events like this underscore the risks. High leverage amplifies gains but also losses—especially when external factors like tariffs or alleged attacks disrupt pricing. The reset MartyParty describes could mean a fresh start for some, but for others, it's a painful wipeout.

Community Buzz and Conspiracy Theories

The crypto community didn't hold back. Replies to MartyParty's tweet ranged from calls for reimbursements—"So everyone who was liquidated should be reimbursed. Lol"—to speculations about China's retaliation against Trump's tariffs. One user lost 75% of their leveraged positions, calling the cycle "cooked for most retail." Another pointed fingers at oracles like Pyth, suggesting involvement from players like Wintermute.

Even CoinGlass's attack exposed broader vulnerabilities in crypto's cloud infrastructure, as noted in industry analyses Proxy Strike on CoinGlass Exposes Crypto Cloud Infrastructure Weaknesses. While official narratives tie the crash to geopolitical tensions FLASH CRASH — Trump's 100% Tariff Shock, the DDOS reports fuel theories of manipulation to clear out overleveraged positions.

Lessons for Blockchain Enthusiasts

If you're diving into meme tokens or broader blockchain tech, this event is a wake-up call. Decentralization shines in crises—the chains held up—but reliance on centralized oracles and exchanges remains a weak link. Consider diversifying data sources, using stop-losses wisely, and staying informed on security threats.

At Meme Insider, we're all about equipping you with the knowledge to navigate these storms. Whether it's understanding oracles or spotting market resets, staying ahead means turning chaos into opportunity. What do you think—was this a genuine attack or just bad timing? Drop your thoughts below.