Part 7/13:
Technical Glitches and Market Infrastructure
Compounding the chaos, some major exchanges such as Binance, Coinbase, and Robinhood experienced technical failures—order books froze, and stop-loss functions were disabled at crucial moments. These technical issues prevented traders from executing protective measures, turning what could have been a sharp correction into an outright market meltdown.
Historical Perspective
In context, this event was nearly 20 times larger than the COVID-19-induced liquidation of March 2020, which saw around $1.2 billion wiped out, and far exceeded the $1.6 billion liquidated during the FTX collapse. The sheer scale, with over 1.6 million traders impacted, underscores its significance.