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Oct 13

Liminal’s breakdown: October 10 market event.

TL;DROn October 10, the crypto markets experienced an unprecedented liquidation cascade that wiped out over $19 billion within hours. Hyperliquid remained fully operational with zero bad debt, while several major exchanges experienced downtime. Hyperliquid’s Auto-Deleveraging (ADL) mechanism was triggered for the first time at this scale in over two years to maintain system-wide solvency. As Liminal is running delta-neutral strategies (spot + short perp), some users with highly profitable sho...

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