BlockBeats News, February 1st. Tom Lee said on this Thursday’s podcast “The Compound” that the current bear market was triggered by the largest deleveraging event in crypto history since October of last year (even bigger than the FTX collapse): a pricing exploit on a trading platform triggered a chain reaction of automatic liquidations, resulting in over 2 million accounts being liquidated globally, 1/3 of LPs) being wiped out, and the trading platform’s balance sheet suffering heavy losses, causing the entire ecosystem to “hobble”. (This section corresponds to minutes 46 to 48 of the video.)
Tom Lee also mentioned that the selling pressure has not completely subsided, similar to the recovery in 2022 needing 8-12 weeks, but clear signs of a rebound have not yet been seen.
