The recent report from The Kobeissi Letter highlighted a moment that has drawn serious attention across crypto markets. Within just 30 minutes, XRP saw a severe contraction in market capitalization, dropping from relatively $161 billion to roughly $80 billion. This occurred during a broader market downturn, but the scale and speed of XRP’s decline set it apart and raised questions about market structure and trading practices. This was not a case of gradual movement or sentiment-driven selling. The compression of value within such a short window suggests a technical trigger rather than a natural shift in demand. It pushed market participants to investigate whether aggressively leveraged positions contributed to the collapse and whether risk controls were inadequate in managing such exposure. This was an unprecedented liquidation event: Amid the crypto crash yesterday, $XRP erased a whopping -50% of its market cap in 30 MINUTES. At 4:50 PM ET, $XRP was worth $161 billion. By 5:20 PM ET, $XRP was worth $80 billion. What happened to XRP? https://t.co/oACmCgYpc2 pic.twitter.com/fUC9U0zeI2 — The Kobeissi Letter (@KobeissiLetter) October 11, 2025 Leverage and Liquidation Pressures The most discussed factor behind the event has been forced liquidations. In markets where leverage is high, a sharp price move can trigger automatic position closures, accelerating selling pressure and amplifying losses. XRP appears to have experienced precisely that dynamic, where liquidation engines pushed prices down faster than liquidity could stabilize. Although the crypto market was under collective strain, XRP’s motion was notably sharper. This led some to attribute the collapse to systemic leverage unwinding rather than organic selling. It serves as a reminder of how vulnerable major assets remain to rapid dislocation when overexposure goes unchecked. Community Response and Defensiveness Reactions to the incident showed strong sentiment among XRP watchers and traders. Some participants focused on leverage as the core issue, arguing that excessive risk among traders, not external factors, caused the abrupt downturn. Their position was clear: crypto markets are often destabilized from within by speculative overreach. Others expressed frustration at the focus on XRP specifically, pointing out that multiple assets suffered heavy losses in the same window. From this perspective, XRP was highlighted not because it was uniquely responsible, but because it is often isolated for scrutiny during broader corrections. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Effect on Market Integrity This event reinforces ongoing concerns about the reliability of market infrastructure in crypto trading. A major asset losing half of its market capitalization in half an hour underscores the absence of mechanisms designed to slow extreme moves, such as circuit breakers commonly found in traditional markets. It exposes the fragility that accompanies high leverage, thin liquidity at critical moments, and the lack of coordinated risk intervention. Institutional investors observing this event will likely question the stability of environments where such volatility can occur without interruption. Retail participants are also reminded that markets can move at a pace beyond manual reaction, driven entirely by automated systems responding to cascading liquidations. As attention returns to recovery and stabilization, the focus will inevitably shift to how exchanges and platforms intend to address these vulnerabilities. Without improved safeguards, similar episodes remain possible. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Historic XRP Dark Moment. What Happened to XRP? appeared first on Times Tabloid .
