Backpack founder Armani Ferrante has addressed recent concerns about the platform, highlighting liquidity issues as a primary challenge. Ferrante commented on the X platform that the past few days have been chaotic, with the industry experiencing its largest liquidation event, leading to a market crash. This has raised user concerns about automatic liquidation, negative equity, and compensation. Ferrante identified two waves of FUD affecting Backpack: misinterpretations regarding 40 users depositing funds without settling negative equity, and inappropriate posts from Backpack's Chinese account, which do not reflect the company's stance. He acknowledged the industry's structural flaws and emphasized the need for solutions like circuit breakers and vaults to mitigate forced liquidations. Ferrante stressed the importance of scrutiny in exchanges and viewed FUD as a chance to identify both weaknesses and strengths.