These people in the cryptocurrency world are all pulling out the roots of the leeks; how can you expect them to save the market? It's all just air.

《$40 Billion Liquidation Shock: The Crypto Market's 'Lehman Moment' and Calls for Rescue》
1️⃣ Scale of Liquidation: A Historical Liquidity Catastrophe
Total Liquidation Amount: Over $40 Billion (equivalent to 1.5 times El Salvador's GDP) Market Makers Account for Approximately 35% ($14 Billion) High-Leverage Retail/Institutional Accounts for 65% ($26 Billion)
2️⃣ The Catastrophic Chain Reaction of $40 Billion Liquidation
🔴 First Layer Impact: Market Maker Paralysis
Top Market Makers (like Jump, Wintermute) Suffered Over $500 Million in Daily Losses Direct Consequences: Withdrawal of Over 50% of Orders, Bid-Ask Spread Widens 300%-500% (e.g., BTC Spread from $10→$50)
🔴 Second Layer Impact: Altcoin Ecosystem Collapse
Average Liquidity of TOP 100 Altcoins Decreased by 80% Typical Case: A Certain DeFi Token's Trading Depth Dropped from $5 Million to $500,000 A $50,000 Sell Order Could Cause a 40% Price Crash
🔴 Third Layer Impact: Breakdown of Credit System
Users Develop a Trust Crisis in Exchanges' Risk Control Capabilities On-Chain Data Shows: CEX Net Withdrawal Volume Hits a New High Since 2022
3️⃣ Bloody Lessons: Why Does the $40 Billion Liquidation Far Exceed Expected Damage?
✅ Mechanism Flaw 1: Full Margin 'Nuclear Button'
A Major Player Used 100 BTC as Full Margin Collateral, Resulting in Forced Liquidation Due to Altcoin's Collapse
✅ Mechanism Flaw 2: Cross-Exchange Chain Liquidation
Price Transmission Path:
Binance Flash Crash → OKX Automatically Triggers Liquidation → Bybit Follows Down → Total Collapse
✅ Mechanism Flaw 3: No Circuit Breaker Protection
Traditional Stock Market: 15% Drop Triggers Circuit Breaker Crypto Market: Can Drop 90% in 1 Minute
4️⃣ Emergency Rescue Plan: 3 Major Measures Exchanges Must Take
🚨 Measure 1: Immediately Establish a 'Crisis Response Fund for $40 Billion'
Funding Source: Exchanges to Deduct 20% of 2024 Profits (Binance/OKX and others Totaling Approximately $5 Billion) Project Parties to Mandatorily Pay Liquidity Insurance
🚨 Measure 2: Reform Liquidation Mechanism
Prohibit Full Margin Collateralized Lending Implement Gradual Liquidation (Liquidate in Batches Every 5% Drop)
🚨 Measure 3: Establish Circuit Breaker System
Single Asset Drops Over 30% in 15 Minutes → Pause Trading for 5 Minutes Total Market Liquidation Exceeds $10 Billion → Automatically Activate Rescue Fund
5️⃣ Data Warning: The Cost of Inaction
If Liquidity is Allowed to Dwindle: Expected Exchange Revenue to Drop by 40%-60% in the Next 3 Months Small Cap Market Value Could Evaporate Another $20-30 Billion Compared to Rescue Cost: Invest $5 Billion in Rescue Fund → Could Prevent $50 Billion in Market Value Evaporation