In 2025, the cryptocurrency perpetual futures market experienced forced liquidations exceeding $154 billion, marking a systemic collapse caused by excessive leverage, neglect of funding rate warnings, and exchange risk mechanism flaws. The most severe event of the year occurred from October 10 to 11, with $19 billion in liquidations, of which 80% to 90% of the losses came from long positions. Analysts point out that retail traders often use ultra-high leverage of 50x to 100x, turning the market into a "liquidation engine," while automatic deleveraging mechanisms and mispriced funding rates further exacerbated the structural collapse.