The Rollup The $40B Liquidation That Exposed Crypto's Biggest Problem - Framework Founders
15 snips
Oct 14, 2025 Vance Spencer and Michael Anderson, co-founders of Framework and experts in crypto markets, delve into the shocking $40B liquidation that rocked the crypto world. They dissect how lack of transparency fuels systemic risks, spotlight Binance's alarming preferential deals, and highlight the importance of robust accounting standards. The duo navigates market structure, discussing which altcoins are worth holding and the potential of ETH as it seeks a bottom. They argue that increasing institutional scrutiny calls for transparency to restore investor confidence.
AI Snips
Chapters
Transcript
Episode notes
Flash Crash Exposed Systemic Opacity
- The $40B wipeout came from a USD DPEG that forced massive perp liquidations and spot selling across alts.
- Vance says someone benefited and the event exposed systemic opacity and counterparty risk on exchanges.
Be Ready To Buy Spot Fast
- Move spot and stables on-chain quickly to seize buying opportunities after a liquidity event.
- Michael advises preparing to act fast because you often get only one or two good entry shots.
Big Players Get Hidden Protections
- Large counterparties often receive bespoke non-ADL deals that shield them from auto-deleveraging.
- Vance warns this creates asymmetric risk where smaller participants bear the storm.