Navigating Volatile Markets: Beyond the “Black Friday” Shock
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Episode 7: Navigating Volatile Markets: Beyond the “Black Friday” Shock
October 10th, 2025, marked a seismic moment for digital assets – the largest liquidation event in crypto history. Nearly $20B in positions were wiped out in hours, sending shockwaves across majors and alts alike.
Colin Farrell (Senior Manager, Institutional Coverage) sits down with Griffin Sears (Head of Derivatives) to unpack what actually happened on “Crypto’s Black Friday” - and what it means for traders, funds, and the broader market structure going forward.
From cascading liquidations and leverage loops to the resilience of institutional “buy-the-dip” flows, the two explore why this wasn’t just another flash crash — and how it could reshape risk management across exchanges, OTC desks, and traditional venues.
Key Topics Covered:
- The Setup: Record open interest, compressed volatility, and overextended leverage created a perfect storm.
- The Cascade: How auto-liquidations on perpetual futures triggered a rapid, self-reinforcing selloff.
- Altcoin Amplifier: Why lower liquidity in smaller tokens magnified the downside – even as majors stabilized.
- Institutional Reaction: Hedge funds and market participants stepped in to “buy the dip,” viewing it as a short-term dislocation, not a structural collapse.
- Risk Management Reset: What this means for the balance between on-exchange leverage and OTC protection – and how traditional venues like CME are regaining traction.
As Griffin notes, “events like this remind everyone of the unique risks in crypto – but also how fast the market is maturing.”
Tune into Episode 7 now live on Spotify or Apple Podcasts to hear the full breakdown.
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