A system and method are provided for controlling a wind turbine in response to a blade liberation event. Accordingly, estimated response signatures for the wind turbine are determined. Sensor data indicative of at least two actual response signatures of components of the wind turbine to a rotor loading are collected. The actual response signatures are compared to the estimated response signatures. The two or more actual response signatures meeting or exceeding the estimated response signatures is indicative of a blade liberation event. In response to detecting the blade liberation event, a rapid shutdown control logic is initiated to decelerate the rotor at a rate which exceeds a nominal deceleration rate of the rotor.