A historic $20B crypto collapse wiped almost $1T from total market cap in under an hour.
So whoās to blame? Exchanges? Market makers?
Neither.
The system behaved exactly as designed - it just should not exist in that form to begin with. Would you blame a scorpion for stinging you? No, as that is what a scorpion does - that is its nature.
Same with a high leverage, low liquidity casino calling itself a market.
Exchanges created the conditions - absurd leverage, thin books, opaque liquidation logic - and market makers exploited them, because that is what they do. The real fault lies in the architecture that allows a single imbalance to cascade into a $20b margin implosion.
So no, it is not the fault of the exchange or the market makers individually.
Itās the fault of a market structure that incentivizes fragility and calls it āinnovationā.
Regulators are just as complicit too imo, theyāre too fkn slow. Iāll frame it like this:
Exchanges built the weapon, the market makers loaded it, but the regulators left the safety off.
Everyone played their part. The only ones without protection are us, the traders/investors.