Hey there, fellow crypto enthusiasts. If you've been anywhere near X (formerly Twitter) lately, you might have stumbled upon a tweet that's sparking a ton of debate in the community. Posted by @bunjil on October 11, 2025, it simply states: "this is worse than the covid crash." View the tweet here. Short, punchy, and loaded with implications—especially for those of us knee-deep in meme tokens.

But what's the fuss all about? Let's break it down step by step, keeping things straightforward. If you're new to this, a "crash" in crypto refers to a sudden, sharp drop in prices, often triggered by external news or market mechanics like liquidations.

The Context: What Happened on October 10, 2025?

The tweet references a massive flash crash that hit the crypto market on October 10, 2025. According to reports from sources like CoinDesk and BeInCrypto, the market saw over $670 billion wiped out in a single day due to auto-liquidations on centralized exchanges (CEXs). Liquidations happen when leveraged positions—basically bets on price movements using borrowed money—get forcibly closed because prices move against them. This created a cascade effect, where one liquidation triggered another, amplifying the drop.

Altcoins, including many popular meme tokens, bore the brunt of it. Some billion-dollar coins plummeted 80% in a single trading candle (that's a short time frame, like 5-15 minutes). Ethereum (ETH) crashed 13%, Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Dogecoin (DOGE) saw corrections between 12-20%. But meme coins on chains like BNB were hit hardest, with some dropping up to 95%. Changpeng "CZ" Zhao, the founder of Binance, even called it a "blood bath" fueled by fear, uncertainty, and doubt (FUD).

The trigger? Reports point to escalating U.S.-China tariff disputes, which spooked investors and led to a broader market sell-off. This wasn't just crypto—stocks dipped too. But in our world, it felt amplified because of high leverage and thin liquidity in altcoin markets.

Comparing to the COVID Crash: Is It Really Worse?

Now, back to @bunjil's claim. The COVID crash in March 2020 saw Bitcoin (BTC) drop about 50% in a single day, from around $8,000 to $4,000. It was brutal, wiping out confidence and leading to a prolonged bear market. The FTX collapse in 2022 was another gut punch, with similar liquidation cascades.

Fast-forward to 2025: This flash crash was quicker and more violent for altcoins. Posts from veteran traders like @CryptoGirlNova highlight that the entire "others" category (altcoins excluding BTC and ETH) dropped nearly 50% in under an hour—faster than anything seen before. @Ashcryptoreal echoed this, noting billion-dollar coins tanking 80% in one candle. Even BTC briefly dipped below $100,000 before recovering.

For meme coins specifically, this feels worse because they're often more volatile and leverage-heavy. Tokens like those on BNB Chain saw a hype cycle burst, with a "Chinese meme bubble" popping and erasing millions in hours. If you were holding Shiba Inu (SHIB), Pepe (PEPE), or newer memes, you likely felt the pain more acutely than during COVID, when meme coins weren't as mainstream.

Replies to @bunjil's tweet add flavor: @jaydecodes says it's "worse than the FTX too," while @dodothedegen calls it "2022 vibes." It's clear the community is rattled, with some drawing parallels to past resets that eventually led to bull runs.

Impact on Meme Tokens: A Knowledge Base Update

At Meme Insider, we're all about meme tokens—the fun, community-driven side of blockchain. This crash underscores their risks: high rewards come with high volatility. BNB-based memes crashed 60-95%, as per Yahoo Finance, signaling the end of a short-lived rally. Why? Overhyped projects, rug pulls (when developers abandon a token, crashing its value), and external FUD.

But it's not all doom. Recoveries are happening—Dogecoin is up 21% in the last 24 hours to $0.1956, per CoinMarketCap data from CoinMarketCap. SHIB and PEPE are stabilizing too. This event could be a "true reset," as @CryptoGirlNova puts it, weeding out weak projects and paving the way for stronger ones.

Key takeaways for blockchain practitioners:

• Spot vs. Leverage: If you're in spot positions (owning the asset outright), sit tight. Panics often retrace.
• Diversification: Don't put all eggs in one meme basket. Mix with stables or blue-chips like BTC.
• Research: Use tools like DexScreener or CoinGecko to spot red flags in liquidity and volume.
• Community Strength: Meme tokens thrive on hype—check Telegram groups and X sentiment for resilience.

Looking Ahead: Opportunity in the Chaos?

Crashes like this test your mettle, but history shows crypto bounces back stronger. The COVID dip led to the 2021 bull run, where BTC hit $69,000. If tariffs ease or positive news hits (like regulatory clarity), we could see a rebound. For meme tokens, watch for survivors with real utility or strong narratives.

If you're feeling the burn, remember: You're a survivor. As @chicablockchain tweeted, over $9B was wiped out—bigger than COVID, LUNA, and FTX combined. But those who held through past storms often came out ahead.

Stay tuned to Meme Insider for more updates on meme token trends and how to navigate these wild rides. What's your take—worse than COVID or just another dip? Drop your thoughts in the comments below.