X @Wu Blockchain

Market Event - A stablecoin on one exchange experienced a flash crash, plummeting to $0.65 due to an internal pricing issue [1] - The stablecoin crash triggered ADL auto-deleveraging, leading to cascading liquidations that closed millions of accounts within minutes [1] - The incident is described as a system-wide chain reaction caused by a code-level flaw [1] Impact on Market Makers and Liquidity - The flash crash severely damaged market makers' balance sheets [1] - Market makers were forced to shrink capital, further weakening market liquidity [1] - The weakened liquidity resulted in sustained pressure on crypto assets in the weeks following the event [1]