Recently, a thrilling spectacle has unfolded in the crypto world. On Wednesday evening, a major exchange's BTC/USD1 trading pair suddenly experienced extreme volatility—Bitcoin plummeted from $87,600 to $24,100, a drop of over 70%. The entire process was so rapid that within seconds, the price soared back up to around $87,000.

It looked like an ultimate thriller. But a closer look at the data reveals that this dramatic fluctuation was limited to this trading pair; other mainstream BTC trading pairs showed no similar movements. This indicates that the problem wasn't with Bitcoin itself, but with the USD1 stablecoin—issued by World Liberty Financial and backed by support from the Trump family.

Why did this happen? The logic behind such "flash candle" phenomena isn't mysterious. Emerging or low-volume stablecoin trading pairs inherently have a weakness: lack of liquidity. Insufficient market makers mean the order book depth is shallow. When large market sell orders hit, or forced liquidations occur, or an automated trading algorithm executes, it can easily break through the buy side. The price acts like a small boat without a helmsman, instantly deviating from the true market level until new buy orders flood in to stabilize it again.

Interestingly, many spot investors found that their holdings were barely affected before and after the flash crash. This also reflects that the scope of the flash crash was limited, more of a technical issue with the trading pair itself rather than a market-wide event.

Crypto analysts point out that in the current environment of geopolitical uncertainty and frequent market liquidity fluctuations, such sudden events serve as a good warning—especially for traders who play with leverage. Even seemingly stable trading pairs can hide risks; insufficient liquidity can create magical price swings in an instant. The core value of Bitcoin remains unchanged, but the choice of trading tools indeed requires cautious consideration.