[Tom Lee: October 11 Crash Triggered by Automatic Liquidations Due to Abnormal USDE Drop on a Certain Exchange] Odaily Planet Daily reported that Tom Lee stated there are numerous automated processes in the crypto market, such as ADL (Automatic Deleveraging Mechanism). When the value of a user's account assets or collateral drops, the system initiates forced liquidation. He pointed out that while USDE maintained a $1 valuation on other exchanges, its internal price on a certain exchange plummeted to $0.65. Due to insufficient liquidity on that exchange, the ADL mechanism was triggered, leading to the automatic liquidation of numerous accounts. This chain reaction eventually spread across the entire market, resulting in the liquidation of tens of thousands of crypto accounts within minutes. Tom Lee believes that, at its core, this was a systemic risk caused by a code flaw: the exchange erroneously relied on its internal pricing system to determine the valuation of the stablecoin, rather than aggregating cross-platform price data. He further stated that this incident significantly reduced the capital of market makers and trading institutions. When trading volume shrinks and triggers price drops, these institutions require more capital to maintain operations, forcing them to further shrink their balance sheets, thereby eroding the market's foundation. He concluded that while code flaws are inevitable, leverage is the true source of risk in the crypto market.