Matrixport reported a historic crash in the crypto market following Trump's threat to impose 100% tariffs on China. The announcement coincided with high leverage and bullish sentiment, leading to a cascade of automatic liquidations on decentralized exchanges. Insufficient liquidity and low trading volumes exacerbated the sell-off, with Ethereum's funding rate plunging to -39%, marking one of the most severe corrections in recent years. The market turmoil nearly wiped out excessively leveraged positions, with only a few traders benefiting from the decline. As volatility subsided, signs emerged of new long positions being established, indicating a potential market recovery. This "capitulation sell-off" has significantly altered the crypto market's position structure.