Community members: The "liquidity vacuum" on October 11 may be caused by a chain reaction of high leverage liquidations.

Odaily News Community member @agintender posted that on October 11, the market experienced a “liquidity vacuum,” possibly caused by a chain reaction triggered by multi-layer leverage liquidation, rather than abnormal platform mechanisms or liquidity being withdrawn. His analysis pointed out that when a unified account triggers liquidation, the system enters a “rigid state,” unable to place or cancel open orders; under extreme leverage usage, the collateral value of large investors and market makers declines simultaneously, leading to liquidation pressure on both Spot and contract positions. Liquidation Bots continuously execute market orders based on mark price, further exacerbating the price decline. When the main market maker account is liquidated and all orders are automatically canceled, the order book briefly loses support, forming a “liquidity vacuum.” He added that the contract guarantee fund losses for the ATOM trading pair on that day reached approximately $150 million, confirming the chain liquidation effect of this extreme market situation.