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Confessions of a Market Maker: Assets Plummeted from $4.4M to $0 in the 11/10 Incident
Blame on market makers for pulling liquidity? That's a misconception. Market makers didn't retreat—they were primed to "catch falling knives" with high bandwidth, tight risk controls, and deep pockets to quote both sides and stabilize the market.
No buy orders? Not a lack of will, but system rejections. If Binance's system had functioned normally, buy orders (like ATOM at $0.10 or $0.01) would have executed. The plunge to $0.001 happened because orders couldn't be placed—possibly with intent to cover it up via candle chart tampering.
The 11/10 Binance glitch locked out major market makers: High-priority MMs faced order rejections due to system errors (e.g., -4118, HTTP 503), stripping buyer-side support. Retail traders and standard strategies couldn't intervene, stalling liquidity entirely.
Benson's deviation report confirms exchange-wide failure: Price comparisons across platforms show Binance—despite its deepest liquidity—experienced the steepest and longest drops (lowest in 58% of cases from 05:15–05:40 UTC+8), proving this wasn't isolated but a structural breakdown.
Deep liquidity, yet worse crashes due to congestion: Normally, a deep pool cushions falls better than a shallow one. But when the system blocks orders, the order book thins out, quotes collapse, turning Binance from "largest liquidity hub" into "heaviest sell pressure."
Binance as the "price setter" sparked a viral contagion: Anomalous prices rippled through indices, mark prices, and liquidation thresholds market-wide, triggering chain reactions on other exchanges—creating a chaotic spiral traders couldn't halt because they couldn't place orders.
Logical conclusion: This wasn't market forces or greed—it was Binance's system buckling under pressure, sealing off risk exits and forcing unnecessary losses on traders.
In simple terms: Even with a stop-loss, you'd be wiped out because there were no bids in the order book. The fallout is way worse than FTX—expect 1.5 to 2 years for recovery at minimum.
Hyperliquid ✅
Binance ❌
Hyperliquid triggered an auto-deleveraging event across perp positions to maintain the platform stability during this liquidation event.
Deploy���s risk management engine responded in sync, securing all users delta-neutral positions and exiting safely to preserve neutrality during the forced event.
Hyperliquid.
Hyperliquid triggered an auto-deleveraging event across perp positions to maintain the platform stability during this liquidation event.
Deploy’s risk management engine responded in sync, securing all users delta-neutral positions and exiting safely to preserve neutrality during the forced event.
Hyperliquid.
🏁 Announcing ›_PROJECT: DYNAMO: In Lap Stage.
how to enter:
- ❤️ like this post + RT
- tag 1 friend
- follow @pandaterminal, winners will be DM’d!
🛑 deadline: 72 hours from now.
rev up your engines!
𝘉𝘦 𝘶��𝘴𝘵𝘰𝘱𝘱𝘢𝘣𝘭𝘦
read below for more info 🔽
Releasing the October Roadmap for PANDA Terminal 🏎️💨
We've worked hard over the past few months to deliver the best tools and infrastructure for traders and there’s still plenty more to build.
Rev up your engines.
𝘉𝘦 𝘶𝘯𝘴𝘵𝘰𝘱𝘱𝘢𝘣𝘭𝘦
@sianjon@BasedOneX found @ready_co to be quite good! subscribed to Ready Metal for 2 months and earned back subscription fee! best thing for this is the zero FX fees!