Tom Lee, Chairman of Bitmine, explained the events of October 10 during a CNBC interview on November 21. He revealed that a stablecoin on a certain exchange unexpectedly dropped to $0.65, triggering an automatic deleveraging mechanism. This led to cascading liquidations, with millions of accounts forcibly closed within minutes. Lee identified the incident as a systemic chain reaction caused by a code flaw, which forced market makers to reduce their balance sheets, further diminishing market liquidity and exerting prolonged pressure on crypto assets.
Tom Lee Attributes Bitcoin Crash to Stablecoin Flash Crash and Systemic Liquidations
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