US$19.5 billion liquidated.
1.6 million traders forced to close their positions.
Bitcoin and Ethereum plummeted.
All this... because of a misreading of an old news story?
The full story
- Trump's announcement sent the market into a frenzy.
On Friday, he declared 100% tariffs on Chinese goods.
The market interpreted this as the beginning of a new trade war.
And the result was immediate: panic, evaporating liquidity, and record selloffs.
- But the reason for the tariff was already public—and no one cared.
China had announced rare earth export controls on October 9th, more than 24 hours before Trump's tweet.
It was treated as irrelevant news until it became the trigger for a collapse.
- Hours later, China clarified: there is no blockade.
Exports remain permitted for those who meet the technical requirements.
There was no ban. There was no disruption.
It was just a misperception.
- The market got it all wrong. And it's already correcting itself.
• Ethereum surpassed $4,000
• Bitcoin is back at $113,000
• BNB surges over 11%
• Solana, XRP, and Lido continue their momentum
- The collapse was real. But the cause was false.
• Largest crypto selloff in history
• $2.5 trillion evaporated from the S&P
• All because of a misinterpreted news story
- What now? "Crash canceled."
The market is already talking about a new trade agreement.
At Polymarket, the chance of a tariff being imposed plummeted to 13%—a 41% drop.