Hey guys I know all of you must be thinking that why the market was going bearish from October 11 , today tom lee explain all these things in his interview .....

Tom Lee explained today why the market dumped so hard on October 11, and the reason is much simpler than what most people assumed.

He said the whole move started from one trading platform where USDE suddenly fell to 0.65, while on every other exchange it was still trading at exactly $1. Because the price feed on that platform was weak, the system picked its own internal price instead of pulling data from other markets.

The moment that wrong price hit, the ADL (Automatic Deleveraging) system got triggered. Accounts that were completely safe became marked as “under-collateralised,” and the system started liquidating them automatically. That liquidation pressure spread to other assets, which created a chain reaction across the entire market.

Tom Lee said thousands of accounts were wiped out within minutes even though many of them were in profit right before the price glitch. Market makers and trading firms also took a big hit because they were forced to reduce positions as liquidity dried up and prices kept slipping lower. When liquidity falls and prices drop, these firms need more capital to maintain margin, which forces them to shrink even further — that’s how the cycle accelerates.

He compared this to the 2009 situation where collateral risk spiralled out of control and eventually broke the system, but noted that the crypto market won’t face the same type of over-regulation. Still, liquidation mechanisms and code weaknesses need to be taken seriously because the root cause of this entire crash was simple: a price feed failed, leverage amplified the damage, and the system did the rest.

According to him, investors should be extremely careful with leverage in crypto because the market can flip instantly due to technical issues, not just fundamentals.

so my question to all of do you think exchanges should be forced to use cross-platform price feeds for stablecoins after this incident?