Wintermute trading collapsed into insolvency—a shocking turn for one of crypto's biggest market makers. The firm's downfall sent shockwaves through the trading community, raising serious questions about risk management and operational resilience in volatile markets.
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GasWhisperer
· 14h ago
ngl, wintermute's collapse really exposed how these mm's were just running on fumes and pray-to-god risk models... watched their gwei patterns spike right before the final bleed out, should've seen it coming tbh
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TokenStorm
· 12-16 07:55
Risk coefficient skyrocketing, this is the consequence of not doing backtesting.
On-chain data has been warning about this for a long time, but unfortunately no one listened.
Market makers can also get wrecked; for us retail investors, just staying alive is already winning.
If the leverage liquidation price is calculated incorrectly once, it can lead to bankruptcy—I've experienced this story yesterday.
The moment arbitrage opportunities disappear, the eye of the storm collapses.
No matter how perfect the technical analysis, it can't save mistakes in operation, as I said.
Whales have long since fled; only we are still sleepwalking.
The miner fees from this crash could support me for a year.
Wintermute trading collapsed into insolvency—a shocking turn for one of crypto's biggest market makers. The firm's downfall sent shockwaves through the trading community, raising serious questions about risk management and operational resilience in volatile markets.