Wintermute founder: The collapse event is influenced by multiple factors, with excessive market leverage

ChainCatcher news, Wintermute founder Evgeny Gaevoy stated during The Block's podcast that "the collapse event is the result of multiple factors. On one hand, there is indeed more leverage in the system; on the other hand, the market has more types of tokens, more perpetual contract products, and more large platforms trading these perpetual contracts. Looking back three or four years ago, we didn't have so many perpetual contract products with huge open interest and hidden risks of collapse. In terms of market maturity, although it is indeed more complete and sophisticated than in the past, this development has also given rise to many problems. It is still unclear who exactly 'liquidated' and who suffered the most losses, but I suspect that many institutions with significant losses were actually running long-short hedging strategies, such as shorting Bitcoin while going long on certain altcoins, thinking this would hedge their risks, only to be 'slapped in the face' by the ADL mechanism."