Bitcoin experienced a sharp decline in late October, dropping over 10% within hours and triggering widespread panic in the cryptocurrency market. The sudden downturn led to a rush among sellers to liquidate positions, utilizing Bitcoin as collateral or cash, yet major liquidations were avoided. The crash has raised concerns about the maturity and resilience of decentralized finance (DeFi) systems and on-chain mechanisms. Market participants are questioning the robustness of these systems in handling such volatile events without significant disruptions.