Unchained Bits + Bips: Crypto Had Its Reset. Will It Go to New Highs Now? - Ep. 924
12 snips
Oct 14, 2025 Carlos Guzman, a research analyst at GSR with expertise in market making, joins the discussion to dissect crypto's massive crash. They explore theories of coordinated attacks and market failures that triggered cascading liquidations, uncovering the sinister dynamics behind liquidity collapse and extreme spreads. Carlos explains the risks surrounding perpetual contracts and draws eerie parallels between the crypto crash and the 2011 equities flash crash. The group debates potential reforms and lessons from traditional finance to strengthen crypto's market structure.
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Exchange Spot Oracles Create Fragile Windows
- Exchanges using their own spot order books for margin can create exploitable price mismatches.
- That mismatch amplified liquidations on perps and caused a cascading market collapse.
Watching Two Waves Of Liquidations Live
- YQ watched a waterfall of altcoin liquidations starting around 5:20 AM Singapore time and saw a second wave when USDe and other tokens depegged.
- He traced a concentrated dump of about $16M that triggered further looped liquidations across markets.
Market Microstructure Can Be A Zero-Day
- Public announcements about oracle or indexing changes create a short exploitable window if attackers combine them with market shocks.
- Ram called that gap a 'market microstructure zero-day' that opportunists can weaponize.
