According to Odaily Planet Daily, Evgeny Gaevoy, founder of crypto market maker Wintermute, said on The Block's podcast that he believes the October 11 crash was the result of multiple factors. On the one hand, there is indeed more leverage in the system; on the other hand, the market also has more token categories, more perpetual contract products, and more large platforms for trading these perpetual contracts.

Looking back three or four years ago, we simply didn't have so many perpetual swaps products with massive open interest and potentially significant crash risks. While the market is indeed more mature and sophisticated overall than before, this development has also created numerous challenges.

It's still unclear who was "blown up" and who suffered the biggest losses, but I suspect many institutions that suffered heavy losses were actually running long-short strategies. For example, they might have shorted Bitcoin and longed certain altcoins. They thought this would hedge their risk, but were ultimately slapped in the face by the ADL mechanism.