Trump Bankrupted Tons of Crypto Bros and Caused Its Biggest Wipeout Ever With One TruthSocial Post

AHHHH BURN IT WITH FIRE! What you’re seeing in that v-shaped move down and bounce back up is crypto bros on leverage watching their entire net worth go up in smoke in an instant. Moves like that are what a leverage flush looks like, and if you are like most crypto traders and do not understand how to properly utilize leverage, you can lose it all in the blink of an eye. To add insult to injury, once the liquidations are over, Bitcoin will snap back to a price well above where you became a forced seller as the selling pressure abates.

Bitcoin dropped about $10,000 in less than 30 minutes, a net drop of about nine percent, but smaller coins got hit far harder. Solana, the casino housing all the shitcoins that crypto bros trade, fell a little over 17 percent in that same timeframe, with smaller coins traded on it falling by as much as 70, 80 or even 90 percent. It was a total wipeout that took out an avalanche of really irresponsible crypto traders who left their entire net worth of millions sitting in levered positions. You can tell a lot about what kind of crypto trader someone is by their reaction to this plunge, as Bitcoin spot traders are not in dire straits whatsoever, while shitcoin and leverage traders are applying for jobs this morning.

Crypto Twitter is overflowing with profit and loss (PNL) screenshots like this one, showing a loss of over $5 million accompanied by statements like “FUCK CRYPTO. IM DONE. GOODBYE.” One popular trading platform called Hyperliquid had over 1,000 traders listed as being down over $100,000 just on Friday alone, with 206 traders down over $1 million in a single day. One person lost $59 million, although those kinds of whales are probably better set up to sustain a loss like that, while most people losing single digit millions or hundreds of thousands are generally gambling most or all of their entire net worths away trying to chase the dream of becoming someone who can lose $59 million and still be fine.

Crypto is a helpful guide outside trading hours for where stocks will trend next, and we got a preview of what equities could look like today both through the crypto wipeout and stock futures tanking on Friday after Trump’s post. He no doubt was getting calls this weekend from people like JPMorgan’s Jamie Dimon, just like he did before, saying that if he wanted to make the April market crash great again, he had set the table for it.

Lmfao what an absolutely incredible chart.

[image or embed]

— George Pearkes (@peark.es) October 10, 2025 at 3:05 PM

Trump further tormented some of his newest voters on Sunday by doing his TACO routine and posting “don’t worry about China,” and stocks are up today while crypto is down and still reeling from its collapse. In his bid to manipulate the markets to his whims, Trump again signaled to traders that he wasn’t serious about his hardline China stance to try to force a deal he has delayed several times this year. Speaking of manipulating markets, 30 minutes before Trump’s Friday post, someone opened a new Hyperliquid account and shorted Bitcoin to hell and made $88 million, I’m sure they have no connection to the administration, and this was just great timing! The stock market being up today is proof that the stock market thinks that Trump’s threats are hollow and he’s full of shit, while crypto is still bleeding, demonstrating how dependent on leverage and gambling it is for growth.

The problem for markets everywhere as I detailed in my TACO explainer earlier this year is that Trump is very aware of the perception that he is a weak baby who can be pushed over very easily by other powerful entities like the bond market or the Chinese Communist Party. At some point, he is not going to cave just as a matter of trying to establish any principle in a negotiation where the Chinese are using American farmers to squeeze Trump. If the stock market thinks it can keep banking on TACO Trump, they should ask their increasingly similar brethren in the heavily leveraged crypto market how that worked out for them until it didn’t.

This event is why Warren Buffett warned everyone about leverage. If you just bought spot Bitcoin and held it, you’re currently only down around 10 percent from the moment before Trump crushed the market, and you’re not really down anything until you sell at a loss. That Friday post and the chaos it caused are no big deal for anyone with a long-term investment timeframe on Bitcoin. But if you leveraged millions of dollars on your spot Bitcoin holdings (meaning you took out debt on crypto to buy more crypto like I and many others have done), that means you are far more susceptible to getting wiped out by far smaller moves. Anyone who loses their entire net worth on an 8 percent Bitcoin dip has no business calling themselves a trader or investor–they’re a gambler, and crypto bros learned a harsh lesson on Friday about what happens when you gamble when there’s an existential risk to the market with every TruthSocial post the president farts out.