In the wild world of crypto, where fortunes can flip faster than a meme goes viral, we've just witnessed one of the biggest blowups in recent memory. On October 10-11, 2025, the market shed over $125 billion in value, with liquidations soaring past $10 billion. Bitcoin tumbled more than 12%, and altcoins—including plenty of meme tokens—got absolutely wrecked. Triggered by former President Trump's threats of 100% tariffs on China, this cascade of sells highlighted the dangers lurking in leveraged trading.

Mert's Take on the Chaos

Mert, the CEO of Helius Labs and a vocal figure in the Solana ecosystem, dropped a timely thread on X that cuts right to the heart of the issue. Posting on October 11, he explained: "I think this is roughly what happened: too many coins, too many perps dexes, too much farming. Combine that with cross-margin defaults instead of isolated, and it gets crazy."

For the uninitiated, perps DEXes (perpetual decentralized exchanges) are platforms where traders can bet on crypto prices with leverage—sometimes up to 100x or more—without an expiration date. Think of them as turbo-charged futures contracts on decentralized apps. Farming refers to yield farming, where users chase high returns by providing liquidity or staking in protocols, often for airdrops or rewards. Cross-margin means your entire account balance acts as collateral for all positions, so one bad trade can wipe out everything, unlike isolated margin, which limits risk to a single trade.

Mert noted that after seeing Aster—a hot new perps DEX backed by Binance's CZ—hold up decently during the volatility (though he called it "barely functional" for him), he slashed his own leverage to a max of 2x. Smart move, as the market carnage unfolded.

In a follow-up reply, Mert added, "And now lighter is down 😭," referring to Lighter, another perps DEX that apparently buckled under the pressure of the high-volume trades and liquidations. Lighter, along with competitors like Hyperliquid and Aster, has been part of the "perps wars," where these platforms battle for dominance with incentives, low fees, and multichain support. But as volumes hit record highs—over $100 billion in 2025 alone—the risks have become glaring.

Echoes of a Prediction

This isn't the first time Mert has sounded the alarm. Attached to his post was a screenshot from a September 23, 2025, exchange where @izebel_eth praised the "perps meta" as the best yet, citing real product-market fit (PMF)—that sweet spot where a product truly meets user demand. Unlike hype cycles around metaverses, NFTs, or commodity infra tech, perps seemed grounded.

Mert replied back then: "From a PMF perspective, yes. From an excessive leverage in the system by degenerates that will cause a nuclear blow up perspective, also yes." Degenerates, or "degens," are the high-risk traders who thrive on leverage but often get burned in downturns.

Fast-forward to October, and his "nuclear blowup" prediction played out exactly as feared. The image in the screenshot shows a bustling PERPD X DAY event in Korea, a 2025 side event highlighting the hype around perpetuals, with crowds lining up under massive billboards.

How This Hits Meme Tokens Hard

At Meme Insider, we're all about those viral, community-driven tokens that capture the internet's zeitgeist. But meme coins are prime fodder for perps trading. With their wild volatility, they're perfect for leveraged bets—think pumping a dog-themed token 10x overnight or crashing it just as fast.

This blowup underscores the risks: excessive farming for airdrops on perps platforms lures in degens, inflating volumes but setting up domino-effect liquidations. When prices drop sharply, cross-margin accounts get liquidated en masse, forcing sales that drive prices even lower. Meme tokens, often thinly traded, amplify this chaos.

Recent examples? Platforms like Aster have faced scrutiny for "suspicious" volumes—some even accused of wash trading—leading to token crashes like ASTER's 10% drop to $1.87. If you're farming or trading memes on these DEXes, Mert's advice rings true: dial back the leverage to avoid getting rekt.

Lessons for Blockchain Practitioners

This event is a wake-up call for anyone in the space. While perps DEXes offer innovation—deep liquidity, high leverage, and yield opportunities—they also breed systemic risks. As Mert points out, the combo of too many tokens (including memes), platforms, and farming incentives creates a powder keg.

To stay ahead:

• Stick to isolated margin: Limit your exposure per trade.
• Monitor platform stability: Even big names like Lighter can go down during peaks.
• Diversify beyond leverage: Balance with spot trading or staking in solid projects.
• Watch macro triggers: Political news like tariffs can spark crypto sell-offs.

For more on how meme tokens weather these storms, check out our knowledge base on meme token volatility strategies.

As the dust settles, the perps meta might evolve, but one thing's clear: in crypto, leverage is a double-edged sword. Stay informed, trade smart, and remember—Mert saw it coming.