The Great Reaccumulation Crypto Reconstruction Following the 2025 Flash Crash
On 10–11 October 2025, the world’s crypto markets witness a violent, high-speed correction: billions of dollars’ worth of leveraged positions are liquidated and prices wildly fluctuate, then settle down to stability within days. The event takes away a ginormous amount of leverage, near-immediate liquidations are estimated at around $19 billion and has traders, exchanges, and institutional desks redoing risk models. (Reuters).In a week, on-chain and price action are building a recovery pattern most traders simply call reaccumulation: steady inflows from large holders, steady ETF and spot-buying, and falling exchange balances as coins are moved to cold storage. That mix says the market’s accumulating liquidity and confidence rather than capitulating.There is a chain reaction that results in the crash: a macro surprise or a geopolitical shock surprises risk assets, derivatives markets exaggerate action through focused leverage, and automated liquidations cascade across exchanges. Margin calls push short-term volatility into a short, vicious downside spike; then buyers with dry powder step in. In this episode, futures deleveraging was one of the main channels for the destruction, and its magnitude ranks it as one of the biggest 24-hour liquidation episodes in crypto history. Institutional Buffers And ETF Flows. Institutional purchasing through the spot and ETF channels continues to supply buying pressure. Systematically amassing funds and corporate treasuries see the dip as an entry point.Whale Congregation And Exchange Outflows. On-chain metrics show massive net outflows from exchanges and heavy whale purchasing classic signs that large holders move funds off exchanges and into cold wallets or custodian vaults. That reduces short-term sell liquidity and signifies confidence in the long term.
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