Amberdata: WLFI May Become an "Early Warning Signal" for Crypto Market Crashes

According to a research report from data provider Amberdata, WLFI demonstrated a significant early warning role during the large-scale market liquidation on October 10, 2025. More than five hours before approximately $6.93 billion in leveraged positions were liquidated across the network, WLFI had already begun to plummet sharply, while the price of Bitcoin remained around $121,000 at the time, showing no apparent signs of stress. The research suggests that because many trading platforms support using WLFI as collateral, the token's sharp fluctuations led to a decrease in collateral value, forcing traders to liquidate BTC and ETH to cover their positions, thereby triggering a chain reaction across the entire market. Mike Marshall from Amberdata stated that this five-hour lead time is difficult to dismiss as a coincidence, and WLFI's high-leverage nature makes it more sensitive to market pressures. (Cointelegraph)