The crypto market faced its biggest liquidation in history on Friday, wiping out $19 billion in leveraged positions as Bitcoin briefly dropped below $110,000.

Analysts point to a mix of macroeconomic shocks and technical failures. A new round of U.S. tariffs on Chinese imports and a Binance price oracle glitch together sparked a domino effect that rattled the entire market.

Global Sell-Off and Crypto Fallout

U.S. President Donald Trump’s tariff threat reignited trade tensions with China, shaking traditional markets. The Nasdaq-100 dropped 3.49%, while Bitcoin fell nearly 4%, extending losses through the weekend.

From Friday to Sunday, the crypto market cap plunged by $450 billion, falling from $4.24 trillion to $3.79 trillion, before bouncing back above $4 trillion.

Binance Pricing Error Amplified Losses

After traditional markets closed, a Binance oracle malfunction triggered widespread crypto liquidations. The issue mispriced several tokens, including USDe, wBETH, and BNSOL, marking them down sharply and liquidating leveraged positions tied to those assets.

Though Binance said its systems “remained operational,” it admitted that some modules “experienced technical glitches.” The exchange has since compensated users with $283 million and adjusted how it prices wrapped assets.

Hyperliquid’s Role and Rising Scrutiny

More than half of Friday’s liquidations occurred on Hyperliquid, a top decentralized exchange for derivatives. Founder Jeff Yan defended the platform, saying it performed “as designed” and blamed excessive leverage for the crash.

Adding intrigue, a whale trader reportedly made $192 million after opening a large short position minutes before Trump’s tariff announcement, fueling speculation of insider trading.