The alt season is over! The crypto market evaporated 450 billion dollars in a single day. Trader Eugene: Goodbye digital asset reserve company.

From October 10 to 11, 2025, the crypto world experienced a major cleanup, leading to a global crypto assets market capitalization evaporation of 450 billion USD in a single day. The USD temporarily depegged to 0.65 USD, setting a record for the largest liquidation in history. Many analysts provided insights regarding this Black Swan Event, and well-known trader Eugene also published a brief yet sharp summary on his personal channel, pointing out that this big dump will fundamentally change the market structure and investor sentiment.

The season of copycats has ended: the destruction of confidence will long suppress risk appetite.

Eugene believes that the asset destruction and psychological impact brought about by this crash will plunge the altcoin market into a low point for the foreseeable future. He said: “The altcoin market has already ended for the foreseeable future. The extent of wealth destruction this time, and the way it was executed, will be deeply etched in the memories of market participants.” This means that market funds will shift towards defensive and hedging assets, such as stablecoins and mainstream coins (BTC), for a considerable period of time, making the liquidity and valuation recovery of emerging tokens even more difficult.

Long and short strategies do not work in the crypto market: completely fail in extreme situations.

In the second point, Eugene bluntly stated that long/short hedging strategies in traditional markets cannot be effective in the crypto market. He said, “These strategies work in normal market conditions, but when you need them the most, they will fail.”

He pointed out that in this event, the high leverage in the futures market and the chain liquidation effect led to a double kill for both bulls and bears. Whether adopting a long position or a hedging short position strategy, it was difficult to escape unscathed. Some quantitative funds and institutional accounts were liquidated in a very short time, demonstrating that the asymmetry and depegging characteristics of the crypto market far exceed those of traditional finance.

The contagion effect will occur, but the extent is unknown.

Eugene also warned that the aftershocks of the liquidation event are not over, and the market may face secondary contagion. He mentioned, “Contagion will definitely occur, but the extent is still uncertain. I hope nothing larger gets breached.” This reflects the market's potential concerns regarding lending protocols, stablecoin issuers, and certain high-leverage CeFi platforms. Some analysts point out that the leverage cycle of USDe and the chain liquidations of Binance's leverage positions may bring delayed pressure to other DeFi pools and liquidity markets.

The author adds: There are rumors that a certain institution in Hong Kong has collapsed in this incident, and there is also a saying that it is the market maker Wintermute, among which Wintermute's CEO Evgeny Gaevoy has responded: “I am very sorry to disappoint you, but everything is normal at Wintermute, everything is as usual.”

Goodbye DATs: The concept of crypto treasury has been severely hit.

Eugene's last words: “Goodbye DATs” sparked widespread discussion in the community. The so-called DATs (Digital Asset Treasuries) refers to companies that use digital assets as their corporate treasury, such as MicroStrategy, Metaplanet, and various types of crypto treasury companies that have emerged in recent years.

He hinted that, with the collapse of market confidence and a comprehensive contraction of leverage, such coin-based corporate asset-liability structures will be the first to bear the brunt. If BTC and ETH continue to experience violent fluctuations, these companies may face re-mortgaging and liquidity pressures, further dragging down the overall market.

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This article The imitation season is over! The crypto market evaporated 450 billion USD in a single day, trader Eugene: goodbye to the digital asset reserve companies first appeared in Chain News ABMedia.