Market Liquidation Event - The crypto market experienced a brutal liquidation event, particularly affecting altcoins and memecoins on centralized exchanges (CEXs) [1][3] - Many altcoins crashed 70-99% in minutes on CEXs, while Bitcoin ($BTC) and Ethereum ($ETH) barely crashed 13% [1] - The liquidation cascade happened so fast that almost no one had time to react, with exchange systems failing across the board [3] Portfolio Impact and Strategy - A trader experienced significant losses on perpetual futures (perps) positions, including $BONK and other altcoins [1] - Approximately 80% of an $ASTER position used as collateral on a DeFi lending protocol was lost [1] - The trader reallocated ~$1 million from the remaining $ASTER position into $BONK and $4, anticipating better risk/reward ratios [1] - The trader remains optimistic about $USELESS coin, believing it has the potential for significant outperformance and at least 10x upside [1] Market Analysis and Future Outlook - The market-wide crash was likely due to market maker (MM)/CEX liquidity issues, as altcoins did not reach similar lows on decentralized exchanges (DEXs) [1] - The trader believes the bull run is not over and anticipates a Q4 rally [5] - The trader plans to reduce dependence on leverage, implement sharper risk management, and focus on protecting positions from exchange-side risks [4] Risk Management and Personal Resilience - The trader emphasizes the importance of focusing on what can be controlled and learning from the event to improve as a trader [3] - The trader highlights the need for transparency in trading activities to help others learn [3] - The trader advises those who experienced losses to persist, survive, and not give up, emphasizing the importance of self-care and mental health [6]

Performance & Impact - The crypto market experienced significant liquidation cascades, with tens of billions of dollars liquidated within minutes [1] - Some altcoins prices approached near zero on centralized exchanges, leading to the liquidation of even 'low leverage' positions [1] - Breakout's system experienced degraded performance due to the high volume of requests [1] Improvements & Support - Breakout has implemented significant improvements to both the trading terminal and risk engine to better handle similar events in the future [2] - Breakout's support team is actively addressing traders' questions and providing compensation where applicable [2][3] Risk Management - Breakout emphasizes that the maximum risk for traders is limited to the test fee [2] - Breakout offers no cross-margin risk, and traders' core spot positions remain unaffected [2]

RT Drift (@DriftProtocol)In the past 24 hours, crypto markets experienced one of the largest flushes in recent history. This was a true stress test for risk systems across the ecosystem, including Drift.Amid this extreme volatility, Drift processed over $76 Million in liquidations across both perpetual and spot markets, incurring just $18K (~0.02%) in socialised losses and maintaining zero downtime throughout.Drift’s risk engine ensured orderly markets and user protection through prudent liquidation paramet ...

RT Haider (@Haider)This is the brutal truth:— When volume surges violently, order engines get overwhelmed.— When risk systems are mis-tuned, the only relief is forced liquidation or de-risking the treasury (i.e. taking hits)What we’ve engineered at OKX is a high-capacity order pipeline + a risk control system that walks the tightrope:-throttling or rejecting only where absolutely necessary-dynamically adjusting margin tiers, collateral factors, and hedges-preserving liquidity even under tail events-all with ...

If you’re completely wiped out, don’t worry.It has happened multiple times in my career.I’ve gone from $10M all the way to zero.Key lesson; adjust your risk management and KEEP GOING.These are all tests and extreme outliers to improve. Don’t stop. Go again. You’ll get there, even though it feels like it’s the end of the world.Stop using leverage, start building with spot.Don’t. Keep going. You’ll be all right. ...

Core Insights - The article discusses a financial advisor's strategy of using a certificate of deposit (CD) ladder for a young client who inherited $50,000, emphasizing the importance of safety and flexibility in investment choices for young investors [1][10]. Investment Strategy - The advisor created a CD ladder with four bank CDs, each funded with approximately $12,000, maturing quarterly over one year, allowing the client to access cash systematically [2][10]. - Laddering involves dividing cash into equal parts and investing in assets with varying maturity dates, providing guaranteed income and flexibility for short-term goals [5][10]. Market Context - The strategy is particularly appealing in a high-interest-rate environment, with current yields on Treasuries and CDs exceeding 3% and sometimes reaching over 4% [6][10]. - Laddering can help diversify a portfolio and provide safety amid economic uncertainty, especially when equities are trading at high valuations [6][11]. Target Audience - The article highlights that laddering is suitable for young investors with specific financial goals, such as saving for a home or car, who prefer to avoid equity-like volatility [7][9]. - Financial advisors recommend laddering for clients who have upcoming large purchases but are uncertain about the timing, as it offers both yield and flexibility [8][9].

Risk Management - Avoid leverage to minimize potential losses [1] - Resist Fear Of Missing Out (FOMO) to prevent impulsive decisions [1] - Expect frequent pullbacks of around 35% in the market [1] Investment Strategy - Focus on holding a main portfolio of 3 to 5 top assets [1] - Consider a small "Degen bag" of less than 10% for trading [1] - Adopt a longer-term holding (HODL) strategy [1] - Buy The Fucking Dip (BTFD) when possible [1] Security & Perspective - Practice self-custody or multi-signature with good wallet hygiene [1] - Zoom out to gain a broader perspective and ignore short-term noise [1]

RT Kamino (@kamino)Despite the unprecedented price action, we’re happy to confirm that Kamino users incurred a total of $0 bad debt, and that the liquidation engine performed exactly as expected.Kamino’s risk and liquidation systems are designed to weather the worst. Though it’s a silver lining amongst the pain, we’re proud that Kamino was able, and continues to keep users safe.In-depth liquidation report to follow. Stay safe, degens. ...

Market Volatility & Leverage - The crypto market experienced a severe flush, indicating high leverage in altcoins [1] - The event is reminiscent of summer 2021, suggesting a significant market correction [1] - The market wipeouts serve as a reminder to avoid leverage and focus on long-term investments [2] Investment Strategy & Portfolio Management - The industry advises concentrating investments in assets with long-term potential [3] - The industry suggests shedding assets acquired based on FOMO (fear of missing out) rather than a solid thesis [3] - The industry emphasizes the importance of holding assets one believes in, especially during market downturns [1][3] Long-Term Outlook & Investor Sentiment - The industry encourages investors not to let short-term leverage blowups dictate long-term views [3] - The industry maintains a positive outlook, emphasizing patience and future rewards [3] - The industry advises checking on friends, acknowledging the potential for negative impact on many [2]

Market Sentiment & Risk Management - The cryptocurrency market experienced a severe flush, indicating high leverage in altcoins [1] - The event is reminiscent of summer 2021, suggesting a potential significant market correction [1] - The market downturn serves as a reminder to focus on assets with strong fundamentals rather than momentum-driven investments [1] - The industry emphasizes the importance of avoiding leverage to prevent substantial losses [2] - The industry advises investors to concentrate on assets they are comfortable holding long-term and to eliminate speculative positions [3] Investment Strategy & Outlook - Some altcoin charts suggest potentially long recovery periods, while others present buying opportunities [1] - The industry encourages investors to maintain a long-term perspective and not let short-term leverage blowups influence their overall investment strategy [3] - The industry expresses optimism about the future of the cryptocurrency market, emphasizing the importance of patience [3] - The phrase "嵐の後" (after the storm) suggests a period of recovery and rebuilding following the market downturn [4]