Odaily Planet Daily News community member @agintender posted that the "liquidity vacuum" phenomenon in the market on October 11 may have been caused by a chain reaction triggered by multi-layer leverage liquidation, rather than an abnormal platform mechanism or liquidity withdrawal.

Their analysis indicates that when a unified account triggers forced liquidation, the system enters a "freeze state," making it impossible to place or cancel orders. Under extreme leverage, the collateral value of both large traders and market makers declines simultaneously, leading to liquidation pressure on both spot and futures positions. Liquidation bots continue to issue market orders based on the mark price, further exacerbating the price slide. When the major market maker's account is forced liquidated and all orders are automatically canceled, the order book temporarily loses support, creating a "liquidity vacuum."

It added that the contract guarantee fund loss for the ATOM transaction alone reached approximately US$150 million on that day, confirming the chain liquidation effect of this extreme market.