The crypto market evaporated $670 billion in a day, with 1.6 million getting liquidated: CEX collapsed again, Hyperliquid passed the "stress test" without downtime.

Recently, the crypto market faced its most severe correction since the FTX collapse in 2022 due to the "Trump imposing 100% tariffs on China" incident, evaporating $670 billion in wealth in a single day and leading to over 1.6 million traders being liquidated, with total liquidations reaching $19 billion. During this extreme market fluctuation, several mainstream CEX experienced outages and order book lag issues. However, the decentralized exchange (DEX) Hyperliquid successfully handled record-high (ATH) traffic and volume with zero downtime and no latency thanks to its HyperBFT consensus mechanism, highlighting the robustness of decentralized finance systems under extreme pressure.

Extreme Market Correction: $19 Billion Liquidation in a Single Day

This crypto market crash is considered the largest market correction since the FTX collapse in November 2022, and some industry insiders believe it is more severe than the impacts of LUNA, the COVID-19 pandemic, and the FTX collapse. Polygon CEO Sandeep Nailwal commented, "Wow! This is bigger than LUNA, the COVID-19 pandemic, and the FTX collapse. Who is this '3AC'? We'll find out in the next few days."

· The avalanche triggered by "Trump tariffs"

The direct trigger for the market crash was the news that "Trump imposed a 100% tariff on China." In just one day, over $670 billion of investor wealth was wiped out, and more than 1.6 million traders were instantaneously liquidated, with the total value of liquidations soaring to $19 billion.

· Stress test under extreme fluctuations

This crisis is not only a test of investor sentiment but also a litmus test for all centralized and decentralized trading platforms. Such a massive liquidation and trading surge effectively conducted a real-world stress test for the entire crypto trading ecosystem.

Mainstream CEX Fails Again: System Congestion and Order Book Freezing

In the largest liquidation event in crypto history, top crypto trading platforms, including several major CEX, failed to pass critical tests and faced severe system congestion.

· Common technical issues: As the market plummeted to unprecedented levels, many users reported encountering order book freezes, application latency, and temporary lockouts during periods of high fluctuation.

· Shortcomings of Infrastructure: These interruption events have once again exposed the vulnerability and limits of mainstream CEX infrastructure in handling extreme market fluctuations, highlighting the risk users face of system failures when they need to execute trades the most.

Hyperliquid's Counter-Trend Performance: Zero Downtime Demonstrates DEX Advantages

In stark contrast to the widespread technical issues of mainstream Centralized Exchanges (CEX), the decentralized exchange Hyperliquid stood out in this "stress test" by demonstrating the robustness of its system with excellent performance.

· Record-breaking zero downtime

Despite recording traffic and volume that set historical highs (ATH), the Hyperliquid blockchain reported zero downtime or latency issues.

· The success of the HyperBFT Consensus Mechanism

The platform's HyperBFT Consensus and execution mechanism successfully managed the surge in throughput and withstood the critical stress test of the network.

· Risk management in place

Hyperliquid states that this incident not only demonstrates the robustness and scalability of its decentralized, fully on-chain financial system, but also that the platform's risk management and margin protocol functioned as expected, maintaining the platform's solvency during extreme fluctuations.

Conclusion

The congestion issues exposed by this market crash in CEX, along with Hyperliquid's robust performance in extreme market conditions, may accelerate the shift of users towards decentralized derivatives exchanges. In every significant pullback in the crypto market, traditional CEXs fail due to technical limitations, while DEXs that operate entirely on-chain have repeatedly proven their high availability and transparency in extreme situations. As the market recovers from the impact of the "Trump tariffs", this liquidation event will undoubtedly become a key point, driving the trading ecosystem towards a more resilient and decentralized direction.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make cautious decisions.