Inside the $19B Crypto Shock: Richard Teng’s Post-Mortem

What Happened on October 10?

On February 12, 2026 at the Consensus Hong Kong conference, Binance Co-CEO Richard Teng provided a detailed account of the chaotic liquidation event that shook the crypto ecosystem on October 10. That day, roughly $19 billion in crypto positions were liquidated globally, impacting both centralized and decentralized exchanges.

Teng pinpointed two major macro shocks as the catalyst: the U.S. imposing new tariffs on China and China’s unexpected rare earth metal export controls. These shocks rippled through financial markets, coinciding with isolated events including a stablecoin depegging and transfer delays.

Approximately 75% of liquidations clustered around 9:00 p.m. Eastern Time, when the stablecoin experienced a loss of peg and some asset transfers slowed down, exacerbating market stress.

"The U.S. equity market plunged by $1.5 trillion in value that day," Teng stated, noting, "The crypto market, being smaller, saw about $19 billion liquidated, but that happened across every exchange."

How Binance Responded During the Crisis

Despite the turmoil in crypto, Binance's trading data exhibited no signs of mass withdrawals or panic exits. With 300 million users and $34 trillion in trading volume last year alone, Binance leveraged its robust infrastructure to support affected clients.

Teng emphasized Binance’s active role:

"Some users were affected by this, which Binance helped support, an action other exchanges did not take. The data speaks for itself."

The company took measures to maintain liquidity and facilitate transfers, mitigating further destabilization during the event.

Market Impact Beyond Crypto

Teng connected the liquidation event to broader geopolitical and financial market dynamics, underscoring that crypto remains tightly coupled with global risks.

"At the macro level, uncertainty about interest rates and escalating geopolitical tensions weigh on crypto assets," he said. "Still, institutional and corporate participation continues to grow, even as retail demand has cooled compared to last year."

This divergence between retail and institutional engagement highlights crypto’s evolving market profile where 'smart money' continues deploying capital despite short-term volatility.

By the Numbers: October 10 Liquidation Overview

Metric	Value	Context
Total Crypto Liquidations	$19 billion	Across all centralized and decentralized exchanges
U.S. Equity Market Drop	$1.5 trillion	Plunge in equity value amplifying stress
Crypto Liquidation Window	Around 9:00 p.m. ET	Cluster during stablecoin depegging and asset transfer slowdowns
Binance Users Supported	Hundreds of thousands+	Active support preventing mass withdrawals
Binance 2025 Trading Volume	$34 trillion	Reflects platform scale and liquidity

Why Did the Market React So Sharply?

The combination of macro shocks and crypto-specific stresses created a perfect storm. The new U.S. tariffs on Chinese goods, coupled with China’s rare earth metal restrictions—a critical supply for tech industries—sent ripples through both traditional financial markets and cryptos.

Stablecoin depegging further undermined confidence during the late evening hours in the U.S., triggering forced liquidations as margin calls intensified. The slowness in asset transfers on certain platforms temporarily disrupted normal trading flows, magnifying systemic risks.

Teng remarked, "These events were unrelated but coincided to heighten market volatility on that single day."

Broader Crypto Trends and Institutional Participation

Despite this devastating liquidation event, Teng portrayed a cautiously optimistic outlook for cryptocurrency's long-term trajectory, highlighting increased institutional deployment.

While retail investor enthusiasm has cooled from the previous year's highs, institutional investors—such as hedge funds, corporate treasuries, and asset managers—are allocating capital steadily into crypto assets.

This shift suggests maturation in the market, with more sophisticated participants foregrounding crypto in diversified portfolios amid persistent macro uncertainties.

Summary

The October 10, 2026 crypto liquidation event serves as a stark reminder of the sector’s sensitivity to broader economic and geopolitical forces. While $19 billion in positions were liquidated, Binance’s leadership under Richard Teng has highlighted the company’s commitment to user support amid crisis, contrasting with unstable exchange responses elsewhere.

Institutional investment trends signal maturation in the crypto market, even as retail enthusiasm moderates. Moving forward, market participants must navigate complex dynamics including stablecoin risks, trade tensions, and monetary policy uncertainties. Vigilance and diversified risk management will remain critical in this evolving landscape.