Today is a day destined for sorrow. Let me talk to you about why altcoins have plummeted. Also provide some heartfelt words to practitioners, exchanges, and retail investors. The conclusion is placed at the beginning, this time it is entirely the problem of active market makers, who are unable to fully demonstrate the typical role of Hedge. This will also be written into financial history, serving as a warning to all financial practitioners. ———— Firstly, we need to clarify that the funds held by market makers are limited, and limited funds will differentiate between different projects. The liquidity supply provided by Tier0, Tier1, Tier2, Tier3, and Tier4 is different. Give the most funding to Tier0 Tier1 projects, while doing other Tier2 Tier3 projects in the meantime. After the collapse of Jump, a large number of projects fell into the hands of active market makers, who lack sufficient hedging awareness and may not have fully considered tail end hedging, only considering ordinary market conditions and not extreme market conditions. So at the moment when Trump decided to reintroduce tariffs, there was not enough funding to support all projects. So we can only guarantee that the major project will not have any problems. The funds originally intended to support small projects may even be diverted to larger Tier0 and Tier1 projects. This can lead to market makers not having sufficient funds to place orders when there is significant selling/selling pressure in the market, resulting in a lack of counterparties and prices being liquidated all the way, similar to the situation with IoT, approaching zero. That's the question, why haven't similar issues occurred before? The current active market makers in the cryptocurrency market are tending towards saturation in terms of advance funding, with a large amount of funds being invested in large projects. Since the beginning of this year, there have been too many Launch projects, which have already exceeded their capacity and cannot fully hedge. The market also lacks sufficient derivatives to supplement liquidity to offset. ———— For various participants in the market For Tier 1 exchanges, it is necessary to establish some risk control systems to prevent proactive MM from encountering such problems. Even if the risk is transferred, users are truly injured, which still has a considerable negative impact on the exchange's reputation For other exchanges that need to engage in counterparty trading with users, effective tail hedging will be a compulsory course, and there are only a few secondary traders in the market who can do a good job in tail hedging, which is not circulating and a huge challenge. For ordinary retail investors, as I have repeatedly stated, full position contracts cannot be touched. They need to have a clear understanding and additional considerations for safety margins. On this day, a comprehensive liquidation will also be carried out for all high leverage users with full positions. This is a punishment for ignorance, and it will also make more people aware of what liquidity is, what full position contracts are, and how high the risk of full position contracts is For practitioners, if your product is a trading product, you must consider extreme market conditions, such as today's market, what should you do? Otherwise, if you come to your product once, it will be declared dead. Whether to protect users or the exchange is a dilemma with no correct answer For MM, it doesn't mean that you can draw lines, create 200 accounts to avoid risk control, or look at OI to see rates skyrocket against competitors. You are awesome, and your risk control system should be more important. Without diamonds, don't take on this porcelain job There is even a rumor that besides the top few MM companies in the current market, such as Wintermute DWF GSR, other so-called active MM companies will be liquidated, it's just a matter of quantity.