Arthur Hayes has attributed the recent Bitcoin crash to dealer hedging activities linked to BlackRock's IBIT structured products. According to Hayes, these dynamic hedging flows, rather than fundamental weaknesses, amplified Bitcoin's rapid decline. He explained that banks issuing structured notes on IBIT must dynamically hedge their exposure, often involving spot Bitcoin and futures, which can create feedback loops during volatile periods. This mechanical sell-off, as described by Hayes, was not driven by market sentiment but by the structured product mechanics. Hayes highlighted that the Bitcoin price fell more than 50% from its all-time high, briefly touching $60,000, coinciding with levels tied to structured product triggers rather than macroeconomic factors. He noted that such price actions reflect market plumbing, where dealer risk management becomes a dominant short-term price driver. Hayes also pointed to a Morgan Stanley dual-directional auto-callable note linked to IBIT, which triggered forced selling when Bitcoin traded below certain levels. During the crash, the total crypto market capitalization dropped sharply, erasing roughly $2 trillion in value. Despite a brief recovery, Bitcoin has declined about 30% this year. Hayes emphasized the importance of adapting to market structure changes, suggesting that traders should focus on issued products, hedging behavior, and mechanical flow-driven price movements.