The October 10 crypto crash wiped out nearly $19 billion in leveraged positions within hours, shocking both traders and analysts.
In an exclusive BeInCrypto podcast, World Liberty Financial advisor and Glue.Net founder Ogle broke down what really caused one of the largest single-day collapses in recent crypto history.
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A Perfect Storm: Multiple Factors Converged
According to Ogle, there was no single trigger behind the sell-off.
He explained that the crash stemmed from a combination of liquidity shortages, over-leveraged traders, and automated sell-offs sparked by macroeconomic jitters.
He added that Donald Trump’s remarks on US–China relations amplified panic in algorithmic trading systems, triggering a wave of automated short positions that accelerated the decline.
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Liquidity Gaps and Over-Leverage Made It Worse
The advisor, who has been in crypto since 2012 and helped recover more than $500 million from hacks, pointed to over-leverage on professional exchanges as the most damaging element.
Many traders used “cross margin,” a system that links all positions together — a design flaw that can wipe out entire portfolios when prices dip sharply.
The Centralized Exchange Dilemma
Ogle criticized the community’s continued reliance on centralized exchanges (CEXs) despite repeated failures.
He cited Celsius, FTX, and several smaller collapses as reminders that users still underestimate custody risks.
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While CEXs remain convenient, the future lies in decentralized finance (DeFi) and self-custody solutions — an evolution even centralized players recognize.
Gambling Mindset and the ‘Gold Rush’ Mentality
Beyond technical failures, there’s a deeper cultural issue plaguing the crypto space. Speculative greed. Ogle compared today’s meme coin frenzy and 100x trading to the 1800s California gold rush.
He warned that excessive speculation damages crypto’s image, turning a technological revolution into what outsiders see as “a casino.”
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Isolated Margin Is Critical
When asked for practical advice, Ogle gave a clear takeaway:
He explained that isolated margin limits losses to a specific position, unlike cross margin, which can liquidate an entire account.
Overall, the October 10 crypto crash was not caused by a single failure. It was the inevitable outcome of systemic over-leverage, low liquidity, and a speculative culture that treats risk as entertainment.
Until traders learn to manage risk and take self-custody seriously, crypto will keep repeating the same mistakes — just with larger numbers.
Source: https://beincrypto.com/world-liberty-financial-advisor-explains-october-10-crypto-crash/
