A massive Bitcoin deleveraging event, driven by crypto-native traders on offshore platforms, resulted in over $20 billion in liquidations last Friday. This unprecedented sell-off reset leverage levels to historic lows, significantly impacting the valuations of major cryptocurrencies such as Bitcoin, Ethereum, and XRP. The event highlighted vulnerabilities within both centralized and decentralized financial systems, although DeFi structures demonstrated resilience. Key players in this deleveraging were crypto-native entities on offshore exchanges, with market makers playing a crucial role in managing risk post-liquidation. Despite the scale of the event, regulatory responses were minimal. This deleveraging episode surpassed previous events, including the March 2020 crash and the FTX collapse, marking it as a significant moment in crypto market history.