[Crypto Market Crash Puts Nearly $1 Billion sUSDe Circular Trading at Risk of Liquidation] According to a report by Sentora Research, after the crypto market crash on October 11, nearly $1 billion in DeFi leveraged positions involving Ethena-staked USDe (sUSDe) are at risk of liquidation. The market crash caused a significant drop in DeFi market interest rates, leading to a sharp decline in returns for leveraged strategies such as sUSDe circular trading. In Aave v3 Core, the borrowing rates for USDT and USDC are approximately 2.0% and 1.5% higher than the returns on sUSDe, resulting in negative yields for users leveraging stablecoin borrowing to go long on sUSDe, with circular positions beginning to incur losses. If the negative interest rate spread persists, related positions in Aave v3 Core could face liquidation risks. The report warns that the negative interest rate spread could trigger collateral sell-offs or deleveraging, further weakening market liquidity and causing a chain reaction. Traders need to closely monitor the changes in the interest rate spread between Aave's annualized borrowing yields and sUSDe returns, especially in cases where the spread remains negative. Additionally, the rising utilization rates of USDT and USDC lending pools could drive up borrowing costs, exacerbating market pressure.