Wintermute founder: The "10.11" collapse was influenced by multiple factors, with excessive market leverage.

BlockBeats news, on October 20, Wintermute founder Evgeny Gaevoy stated during The Block's podcast that he believes the “10.11” crash was the result of multiple factors. On one hand, there is indeed more leverage in the system; on the other hand, there are more categories of tokens, more Perptual Futures products, and more large platforms trading these Perptual Futures. Looking back three or four years ago, we didn't have so many Perptual Futures products with huge open interest and hidden risks of massive crashes. In terms of market maturity, although the overall market is indeed more complete and sophisticated than before, this development has also given rise to many problems. It is still unclear who exactly “got liquidated” and who suffered the most losses, but I suspect that many of the severely losing institutions are actually running long-short strategies, for example, they might short Bitcoin and go long on certain alts, thinking this would hedge their risks, only to be “slapped in the face” by the ADL mechanism.