In this market, the lives of retail investors are not lives. They are selfless contributors to liquidity.

Time flies so fast; today is December 11th. No one or institution has been held accountable for this disaster. This is still an unregulated dark market where big fish eat everything.

Instead, the world's largest exchange is bustling, inviting all the visible KOLs to a party. The scene is filled with drums and gongs, yellow flags waving, motivational speeches, and endless group photos, with guests expressing their utmost admiration and reverence for the deity. No, it is the worship of the emperor. They only regret not being able to self-castrate on the spot to accompany him.

How ironic, everyone knows that during an avalanche, no snowflake is innocent, yet many are willing to be dogs. They think that being the master's dog means they won't be killed.

Looking back at what happened on October 11th. The external trigger was Trump's 100% tariff policy against China, an event that can be likened to the assassination of Ferdinand. Secondly, there were the usual internal structural issues in the crypto space, with the average leverage ratio of major exchanges having surpassed historical highs. A large amount of speculative capital entered the market through high-leverage contracts, making the market structure exceptionally fragile.

However, the decoupling of USDe was the nuclear weapon that caused the crash. Some institutions actively promoted this stablecoin and repeatedly launched high-yield products targeting USDe. Algorithmic stablecoins, which inherently have design flaws and potential liquidity risks, surprisingly became widely used by users as collateral for contract margins and circular lending under the endorsement of exchanges.

High leverage and decoupling triggered a chain of forced liquidations across margin positions. The crash occurred during Friday night in the U.S. and early Saturday morning in Asia, with market makers unable to react in time, leading to an instantaneous depletion of liquidity. At the same time, the limited funds of market makers prioritized the protection of leading projects in a panic, causing a large number of altcoins to lose buying support, resulting in "flash crashes" and even halving. Over $19 billion in liquidations occurred in a single day, affecting more than 1.6 million investors.

In addition to retail investors, market makers also suffered heavy losses. Below is an article from "Wu Says" interviewing market makers, which details the systemic issues they faced on October 11th. (Thanks to Wu Says for the authorization to quote.)

Eyewitness Review of the 1011 Disaster

After the incident, exchanges tried their best to portray an innocent stance, attempting to downplay this man-made disaster as a routine leverage liquidation. They claimed that distributing "compensation" was a responsible act. This is not just a slap followed by a date; this is burying someone and then burning some paper money.

Many assets vanished into thin air on October 11th; it was a disappearance, not a transfer. In such a level of disaster, no trader is a winner. The only beneficiaries are the exchanges. Yet, the instigators do not feel they are at fault and lament their darkest moments, unable to sleep.

Blogger Benson Sun (X@BensonTWN) wrote the following on social media:

"If an industry has only PR and no self-reflection after a major incident, only celebrations and no introspection, only applause and no accountability, then this 'great fire' will never be extinguished. It will only change its time and place, continuing to burn towards the next batch of believers who are defenseless. And we survivors are merely the ashes that have not yet been our turn."

In this market, the lives of retail investors are not lives. They are selfless contributors to liquidity. The number of commemorative dates in crypto history, similar to March 12th and May 19th, is increasing, and October 11th is one of them. Survivors cannot adopt an attitude of indifference towards the deceased. If disaster strikes them one day, who will stand up for them?

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