Stacks Largest Crypto Liquidation Event - Now What? w/ CMS Holdings & Split Capital
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Oct 19, 2025 Daniel Matuszewski, co-founder of CMS Holdings, and Zaheer Ebtikar, founder of Split Capital, dive into the chaos following the mass liquidation on October 10. They discuss the mechanisms behind market collapse, the role of market makers, and the implications for future trades. Both guests dissect why liquidations are likely to happen again and explore the concentration of investments in a few token assets versus altcoins. They offer practical advice on avoiding leverage and highlight which ETFs could thrive in the current climate.
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Alts Took The Brunt Of The Crash
- The Oct 10 liquidation hit alts far harder than BTC and ETH because paper FDV evaporated quickly.
- Hiding in majors reduced risk as most long-tail alts lack deep liquidity.
Shallow Books Make Alts Fragile
- Market makers quote shallow books on most alts to remain capital efficient.
- When liquidity providers pull back, order books can instantly evaporate and prices plunge.
Don't Use Leverage On Illiquid Alts
- Avoid trading long-tail alts on leverage because collateral and position degrade together.
- Favor assets with real spot volume and broad exchange listings to reduce execution risk.