"1011 Flash Crash" One Year On: Crypto Market Risks Persist, Investors Urged to Control Leverage Prudently

According to CoinDesk, one year has passed since the "1011 Flash Crash," which triggered approximately $19 billion in leveraged liquidations across the crypto market. Analysts warn that the underlying structural risks that caused the flash crash still persist.\nIn October ​​2025, Bitcoin experienced a sudden flash crash within days of hitting an all-time high of over $126,000, rapidly plunging from around $122,000 to $105,000 in a short period, leading to a concentrated liquidation of large-scale leveraged long positions.\n\nMark Connors, an analyst at Risk Dimensions, noted that recent short-term price movements remain highly driven by derivatives such as perpetual swaps rather than on-chain data, and the tilt of exchanges toward high-leverage products has also failed to eliminate the flash crash risk; additionally, the traditional four-year halving cycle pattern has shifted, with macroeconomic and political forces now playing a more critical role.\n\nChris Sullivan, co-founder of Hyperion Decimus, advised that traders should avoid excessive leverage, closely monitor open interest, funding rates, and market sentiment indicators, while long-term investors are better off withdrawing assets from trading platforms and adopting self-custody.