JP Morgan Manipulated a $19B Crypto Crash With Outdated Data, Analysts Claim

Analysts from Bitcoin For Corporations (BFC) are accusing JP Morgan Chase of orchestrating the October 10, 2025, crypto market crash, alleging the bank strategically resurfaced a 42-day-old internal investor note to reignite fears around MicroStrategy.

The investor note warned that MicroStrategy — now rebranded as Strategy— could face potential removal from the MSCI USA Index and the Nasdaq 100, a move that could trigger as much as $2.8 billion in passive outflows. BFC claims the market had effectively ignored the warning for six weeks until JP Morgan reportedly recycled the document as new information, sparking a panic-driven sell-off that wiped out an estimated $19 billion in Bitcoin-related equity value.

A Coordinated Timeline? Analysts Say Events Look “Too Convenient"

BFC’s analysis outlines what it calls a “strategically aligned” series of events over four months that collectively intensified pressure on MicroStrategy and other publicly traded Bitcoin treasury companies.

The timeline begins in May 2025, when prominent short seller Jim Chanos revealed a “Long BTC, Short MSTR” trade — a position designed to profit if MicroStrategy’s stock underperformed relative to Bitcoin. Two months later, in July, JP Morgan imposed an unusually steep margin requirement increase on MSTR positions, raising trading costs and draining liquidity around the stock.

Pressure mounted further in September after Bitcoin treasury firm Metaplanet announced a capital raise, which analysts say heightened institutional anxiety about companies scaling the “Saylor Playbook.”

The most suspicious timing, however, came on October 10, when MSCI released its classification consultation update precisely 16 minutes before President Trump announced new tariffs. According to BFC, the tariff news provided a perfect macro distraction while automated trading systems reacted aggressively to the renewed risk of MicroStrategy being removed from major U.S. indexes.

BFC argues that none of these events appear coincidental — and that the sequence created a manufactured environment for panic selling.

A wave of traders, commentators, and investment bankers have since echoed these claims. Investor Simon Dixon accused JP Morgan of “leveraging MicroStrategy’s corporate debt exposure to indirectly influence Bitcoin’s price,” adding that Michael Saylor’s debt-backed Bitcoin strategy created a vulnerability that legacy financial institutions could exploit.

Analysts broadly agree that the October 10 crash was not driven by Bitcoin fundamentals but by a technical liquidity shock amplified by index-linked algorithms, automated deleveraging, and sudden forced sales.

Saylor Fires Back as Institutions Sell Ahead of MSCI Ruling

Michael Saylor responded to the allegations by emphasizing that MicroStrategy is not merely a Bitcoin proxy but a functioning enterprise software company with hundreds of millions in annual revenue. He reiterated that the firm’s Bitcoin treasury strategy remains unchanged, despite the escalating debate around index classifications.

MSCI’s final decision on MicroStrategy’s classification is expected in January 2026. A removal from major indexes could trigger billions more in passive outflows, leaving investors uncertain as the deadline approaches.

Meanwhile, institutional disclosures show that major asset managers — including JP Morgan, BlackRock, and Vanguard — have been offloading MSTR shares ahead of the decision. JP Morgan alone reportedly cut its position by 25%, a reduction analysts say significantly contributed to MicroStrategy’s price pressure.

MicroStrategy’s stock has fallen 56% month-over-month, while Bitcoin itself is down 12% year-to-date. Critics argue that these moves strengthen the case that institutional players weaponized index mechanics and outdated data — contributing directly to the October 10 flash crash.

The result, they say, is a market event that looks far less like an organic correction and far more like a coordinated effort by legacy financial institutions to destabilize Bitcoin-exposed companies at scale.