Onchain data reveals panic selling and FOMO re-entry amid $10B crypto liquidation event
Addresses linked to hackers made a costly trading blunder during last weekend’s crypto market crash, selling thousands of ether (ETH) at the bottom and rebuying shortly after the rebound — resulting in a loss of roughly $5.5 million, according to onchain analytics firm Lookonchain.
Data shows the tagged wallets sold 8,638 ETH worth around $32.5 million at $3,764, then repurchased 7,816 ETH for nearly the same amount when Ethereum prices rebounded to $4,159. The net difference implies the wallets effectively sold low and bought high — a rare move for typically calculated exploit-linked addresses.
Lookonchain identified the activity through Arkham Intelligence-tagged wallets, which are associated with previous crypto exploits. The firm shared three verified Arkham address links in an X post as proof of the transactions. However, the exact identity of the hackers remains unknown.
Triggered by global macro shock
The event coincided with a historic $10 billion liquidation cascade that followed the U.S. government’s announcement of 100% tariffs on Chinese imports on Oct. 10.
Crypto markets plunged more than 9% in total value, marking one of the sharpest deleveraging events on record. Some estimates placed the total forced liquidations closer to $19 billion, as leveraged positions across exchanges were wiped out in minutes.
Analysts described the sell-off as a “perfect storm” of macro panic and overleveraged trading, with thin liquidity in altcoins worsening the fall.
By Monday morning, the market had stabilized, with Bitcoin (BTC) trading above $114,000 and Ethereum reclaiming the $4,100 level, reflecting a quick recovery from the extreme volatility.
Still, the hacker wallets’ misstep highlights how even experienced or automated entities can fall victim to emotional trading or algorithmic misfires during high-stress events.
“Even exploit wallets behave irrationally when the market collapses in seconds,” one independent analyst commented. “It shows how chaotic liquidation events can distort decision-making — human or not.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.