⚠️ ALERT: Hyperliquid’s HLP vault lost $5M after a POPCAT manipulation attack triggered cascading liquidations. https://t.co/AWKQYMuJnP ...

Core Insights - A record-high $31 billion in Bitcoin options is set to expire on Halloween, surpassing last month's $18 billion expiry significantly [1] - The recent liquidation event on October 10 wiped out $19 billion in leveraged positions, leading to a $7 billion decrease in Bitcoin options open interest [2] - Open interest on Deribit has reached an all-time high of $50.27 billion, reflecting increased institutional hedging against downside risks [4] Options Expiry Details - $14 billion in options contracts are expiring on Deribit, while CME has $13.5 billion worth of Bitcoin options expiring [3] - There is a notable concentration of put contracts at a $100,000 strike price, accounting for $2 billion in open interest, indicating bearish sentiment [5] - Call options are clustering around the $120,000 level, suggesting bullish bets on potential rebounds [5] Market Volatility and Leverage - Analysts warn that large expiries can lead to increased volatility, with historical trends indicating a clearer directional move in the 24-72 hours following the expiry [6] - The market still holds significant leverage, which could trigger another cascade liquidation event similar to the one observed recently [6][7] - Cascading liquidations occur when sudden price drops force leveraged long positions to close, creating further downward pressure on Bitcoin's price [7]

It doesn’t take a black swan to unravel a protocol. 🦢All it takes is thin liquidity, bad timing, and leveraged exits.We’ve seen it play out before with Terra, CRV, Fraxlend.Our latest blog post deep-dive breaks down:🔹 Why cascading liquidations snowball.🔹 How risk concentration spirals into bad debt.🔹 What most DeFi protocols miss in design. ...