The Oct. 10 crypto crash — which wiped out over $20 billion (and potentially much more) in leveraged positions within hours — was the biggest liquidation event in the industry’s history. The speed and scale of the selloff stunned traders and exposed how fragile crypto’s market structure remains. I asked crypto VCs what triggered the cascade, what fixes are needed to prevent a repeat, and what comes next.

Most investors said the crash was less about Trump or tariff headlines and more about leverage and weak infrastructure. Open interest — a proxy for notional leverage — had reached record highs, meaning there was simply “more money that could be liquidated,” said Rob Hadick, general partner at Dragonfly. When prices…