Analysis: The "1011" crash forced market makers to hold large amounts of tokens, causing market liquidity to fall to its lowest point since 2022.
PANews reported on January 8th that, according to CoinDesk, BitMEX stated in its latest report that the crash on October 11, 2025, impacted market makers, forcing them to hold large amounts of cryptocurrency. This crash resulted in approximately $20 billion in cascading liquidations, severely damaging market makers' neutral strategies and causing market liquidity to drop to its lowest level since 2022. BitMEX stated, "When the ADL (automatic deleveraging) mechanism was triggered, forcibly closing out market makers' short positions used for hedging, these institutions were forced to hold unhedged spot positions during the rapid market decline. This situation broke the commitment of the perpetual contract's 'neutral strategy,' causing market makers to withdraw liquidity globally in the fourth quarter of 2025, thus bringing order book liquidity to its lowest level since 2022."
With a large influx of imitators, Delta-neutral "easy returns" that rely on funding rate arbitrage have shrunk significantly, with annualized returns falling below 4%. At the same time, B-book-style platforms have reaped substantial profits, the DeFi perpetual contract market remains susceptible to manipulation, while the traditional financial perpetual contract market has experienced explosive growth.
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