Wintermute Talks about the Great Crash of 1011 Wintermute should be the first MM to take the initiative to speak out and clarify the truth from the perspective of market makers regarding the 1011 incident. I highly recommend that friends who are working hard to restore the events of 1011 that night take some time to read it. I feel that it has added a lot of puzzle pieces. @Evgeny Kaevoy answered some sharp questions very honestly, and the article was very long. I picked a few interesting points and added my own comments with diagonal lines: ~~~~~~~~~~~~~~~· When people say 'market makers exit the market and are unwilling to provide liquidity', it is often not 'unwilling', but 'simply impossible' - unable to quote here or place orders there because assets cannot be moved. --At least a part of MM was forced to stop providing liquidity and went down Many institutions have passively closed their positions at extremely outrageous prices this time. Taking us as an example, some ADL prices are completely illogical, with market prices at $1, while our short positions are forcibly closed by the system at a price of $5. This cannot be hedged at all, it can only be a momentary loss. --ADL is an important reason why MM suffers losses From a business perspective, for exchanges and market makers, allowing retail investors to continue trading, engage in repeated games, and retain for the long term is far more profitable than "cleaning retail investors once a year". Because once everyone is cleared, many people will completely leave and never come back. --CEX and MM have no subjective motive for digging leek roots Hyperliquid should ultimately find a balance between transparency and privacy - current information disclosure is indeed a bit 'excessive'. One solution is to improve privacy; Another potential solution is to introduce circuit breakers. The scope of infection this time is very limited compared to 2022. At that time, companies like Three Arrows lent money to Genesis, and Genesis borrowed money from Gemini, causing the entire industry to become interconnected and ultimately leading to a series of bankruptcies. However, the current system is much cleaner and has better risk isolation. --Very important, this is consistent with my judgment. There is no underwater thunderstorm in the industry, so you can rest assured. We are satisfied with our response performance. Although there were some losses in ADL, I also made a lot of money due to high volatility, which offset each other and made the overall situation good. Of course it could be better, but overall there's no problem. What's quite annoying is that there are a lot of FUDs now, and we have spent a lot of time communicating with our competitors, cooperation agreements, and explaining our inventory status. --Wintermute bankruptcy rumors can stop now I think the market heat of altcoins will significantly decline. Of course, there are new retail investors entering every day, so the market will recover sooner or later. However, in the short term, there will not be a major 'altcoin season'. --Wintermute is quite pessimistic about the knockoff season, but believes that mainstream big coins are not a problem. Liquidity will further pool towards BTC, ETH, and SOL, which is actually a positive signal that some mainstream assets are "safe enough to hold for the long term". There is actually a misconception about Wintermute that we short every day. Actually, we have almost always been a net long.