Crypto’s Record Selloff Sparks Intrigue Over Who Got Wiped Out

The day after crypto experienced its biggest one-day selloff, everyone in the industry was trying to figure out who was left holding the bag.

A record $19 billion in bets evaporated and crypto prices tumbled, due in large part to newly severe China tariffs announced by President Donald Trump. A combination of factors — leverage, automatically triggered sales, a lack of liquidity at odd hours for global trading — fueled what might have been a less dramatic obliteration of positions.

From the morning hours in Asia through the afternoon in the US on Saturday, traders, executives and market-data analysts ...