The crypto derivatives market changed significantly in 2025 after the Oct. 10-11 market crash, which caused record losses and exposed problems with how crypto trading platforms manage risk, according to a report from BitMEX.
BitMEX said about $20 billion in leveraged trades were forced to close during the crash, making it the largest liquidation event in crypto history. Unlike past crashes, the losses fell more heavily on “sophisticated” market makers than on retail traders.
“The defining event of 2025 was not a macro-driven selloff, but rather a microstructure failure among most crypto exchanges,” the report reads. “The October crash will be studied for years, not for the price depth, but for the ADL Feedback Loop that harmed the market’s liquidity providers.”
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