Why did the market crash? 1. The news of Binance's $6.3 billion theft sent shockwaves through the market. The massive loss of funds from hot wallets triggered widespread panic. 2. Approximately $1.5 billion in long positions were liquidated across the network, with over 80% being long orders. Forced liquidations created new sell orders, triggering a chain reaction. 3. 11 billion Bitcoin options expired today. The added pressure from the hack amplified volatility. 4. Macro liquidity was already tightening, making borrowing expensive. Investors were hesitant to invest in risky assets, and the hack exacerbated the situation. 5. Institutions are also withdrawing funds from centralized exchanges. Damon Xu, founder of 1Token, stated that this might not just be a price drop, but a trust issue and a structural problem.