American retail investors suffered a heavy blow on "Black Tuesday," with a big dump in the stock market and a clearing amount of Crypto Assets reaching $1.3 billion, resulting in heavy losses for traders.

Key points: On Tuesday, the three major U.S. stock indexes fell sharply, with the Nasdaq index leading the decline, down 2%. The Goldman Sachs retail stock index fell 3.6%, marking the largest single-day drop since April. The cryptocurrency market experienced over $1.3 billion in liquidations, with Bitcoin prices dropping below $100,000 and Ethereum prices plummeting over 10%. Palantir's weak earnings and Michael Burry's bearish stance exacerbated investor panic. As retail investor sentiment turned to panic, the stock market crashed. U.S. retail investors faced “Black Tuesday,” with widespread dumping of stocks and cryptocurrencies. The Nasdaq Composite Index fell over 2%, and the Goldman Sachs retail stock index fell 3.6%, marking the largest single-day drop since April. Data from JPMorgan shows that despite the growing losses, retail investors still net bought $560 million in stocks and ETFs. Analysts believe this is mainly due to… the recent stock price crash is the result of Palantir's disappointing earnings report, short-selling pressure, and increased volatility in digital assets. Palantir and Burry triggered market panic. Palantir Technologies (PLTR)'s quarterly report raised concerns about slowing growth and overvaluation related to artificial intelligence spending, causing its stock price to drop nearly 8%. To make matters worse, it was reported that legendary investor Michael Burry established new short positions targeting U.S. stocks, intensifying the panic selling led by retail investors. The cryptocurrency market suffered a heavy blow: $1.3 billion evaporated. Turmoil spread to the cryptocurrency market, with Bitcoin dropping below $100,000 and Ethereum (ETH) experiencing a single-day drop of over 10%. Data shows that 342,000 traders were liquidated within 24 hours, with total liquidations on futures exchanges exceeding $1.3 billion. This wave of liquidations was caused by a sharp decline in risk sentiment and insufficient liquidity. This led to a chain of margin calls across major digital assets, amplifying price fluctuations. Market outlook: Analysts warn that stocks and cryptocurrencies may remain volatile in the short term as investors reassess valuations ahead of key U.S. economic data releases and Fed statements. However, some believe this week's pullback may just be a temporary whipsaw phase.