BitMEX Reports $20B Loss from October Crash, Ending Easy Money Era for Crypto Market Makers
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Market Crash Impact: The crypto market crash from October 10 to 11 resulted in approximately $20 billion in losses, marking the most severe event in history for professional traders, forcing market makers to exit and reducing liquidity to its lowest levels since 2022.
- Hedging Strategy Collapse: Auto-deleveraging mechanisms unexpectedly closed hedged positions during the crash, exposing market makers to falling prices and significantly decreasing order book depth, which adversely affected overall market stability.
- Liquidity Crisis: The collapse of hedging strategies led liquidity providers to withdraw en masse, leaving crypto order books dangerously thin, further exacerbating market uncertainty and volatility.
- Industry Restructuring: Despite the turmoil, BitMEX argues that this shakeout may clear out fragile platforms, paving the way for more resilient exchanges and genuine innovation, thereby laying a foundation for future market stability.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
