Opinion: This recent plunge is akin to a major market maker proactively withdrawing liquidity, and despite a profound deleveraging event, optimism for Q4 remains.

BlockBeats News, October 11th, Crypto KOL and former FTX Community Partner Benson Sun posted on social media today that in the early morning, many meme coins saw a drop of over 60%. In the past, extreme liquidation events were usually around 10-20 billion U.S. dollars in scale, but this time it has expanded tenfold. The sharp drop in the stock market causing a decline in the crypto market was originally reasonable, but the massive short-term evaporation of meme coin market cap is highly unusual, unlike a normal liquidation due to excessively high leverage.

It is more similar to a large-scale market maker actively withdrawing liquidity, leading to an instant deep vacuum in the market. The downturn of meme coins is even more intense than the 3/12 and 5/19 events. This round of deleveraging can be described as the most thorough one in this cycle. The market bubble has been completely squeezed, and risk leverage has returned to zero. The outlook for the fourth quarter remains positive, and a phased dollar-cost averaging strategy will be implemented over approximately one month.