On November 23rd, Tom Lee, in an interview with CNBC, answered the host why the crypto market plummeted on October 11th, saying, "There are a lot of automated processes in the crypto market. Among them, ADL (automatic deleveraging mechanism) is a typical example - when the price of user account assets or collateral falls, the system will initiate forced position squaring like the traditional market margin call.
While USDE maintained the $1 price on other trading platforms, the internal quotation of one trading platform plummeted to $0.65. Due to the lack of liquidity on the trading platform, the ADL mechanism was triggered, resulting in a large number of accounts being automatically liquidated, and the chain reaction eventually spread to the entire market. "
Tom Lee: The 10.11 plunge was caused by the automatic liquidation caused by the abnormal decline of USDE on a trading platform
2025-11-23 05:53:54
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