The podcast provides an in-depth analysis of the October 10 2025 crypto liquidation cascade, which resulted in an estimated $19 billion in losses following a political announcement of new tariffs. The author contends that the massive market collapse was not primarily caused by the initial price drop but by critical flaws in market microstructure, particularly on the Binance exchange. Key failures included the exchange’s reliance on spot market prices for wrapped collateral assets (like wBETH and USDe), which disconnected their value from their underlying fundamentals during the crisis, triggering a liquidation doom loop. The text also highlights the simultaneous operational failure of market makers who were unable to provide liquidity, exacerbating the collapse and demonstrating the fragility of the 24/7 crypto financial infrastructure.