How Sudden Liquidity Losses Led to ADL Liquidations and Massive Market Maker Losses
October 11, 2025 marked the largest single-day liquidation event in crypto history, with total liquidations estimated at $20–30 billion. In an interview with WuBlockchain, ZeroDivision CEO Zhen Guo shared how his team navigated the extreme market conditions during the October 11 crash and explained the quantitative strategies behind their trading system.
Zhen Guo gave a detailed account of what happened during the crash — how market makers were hit by a sudden collapse in liquidity and a wave of ADL (Auto-Deleveraging) liquidations, the challenges and losses that followed, and how ZeroDivision’s risk framework is designed to mitigate such risks through automation and market-neutral strategies. He also discussed how the team…
