State Machine

For it to be this bad? Wintermute. Or DWF. Selini got pretty destroyed apparently. Or an overleveraged protocol/ exchange Short version: the desks that actually blew up on 10/10 were mostly on Hyperliquid, and they were not the usual big, public names like Jump, Wintermute, or GSR. They were more like high-leverage perps whales / MMs who got completely nuked. Here’s what’s surfaced so far: ⸻ 1. ABC (top market maker on Hyperliquid) •ABC is (was?) one of the main liquidity providers on Hyperliquid, typically doing ~20–25% of all volume there on a normal day. •During the Oct 10–11 cascade, ABC reportedly lost over $35M and had roughly 73% of its account wiped. After that hit, it was still up lifetime on the venue, but in terms of “who just got torched,” ABC is basically Exhibit A. •That level of damage is consistent with a desk being forced to puke size into airless books — i.e. you’re not managing risk anymore, you’re in survival mode. If you’re asking “who actually blew up,” this is the closest to a clean answer. ⸻ 2. Cyantarb •Cyantarb is another active market-making / arb account on Hyperliquid. •It was described as being fully liquidated during the crash: forced to close roughly $100M in positions, taking an estimated $18–19M real loss. •By historical trading volume it was one of the larger accounts on the venue, and after 10/10 it was basically gone. That’s not “had a bad day.” That’s “table flipped.” ⸻ 3. Selini Capital •Selini Capital (a crypto hedge fund / quant shop) had multiple sub-accounts on Hyperliquid liquidated. •Reported damage: $50M–$70M total exposure liquidated, with about $16M of that lost in one night. •So, not fully dead, but definitely one of the largest named funds that took a visible hit. ⸻ 4. Was this Wintermute? (The rumor everyone ran with) •Right after the crash, Crypto Twitter lit up with “Wintermute is insolvent / Binance hunted Wintermute” type claims. •The story floating around was: Wintermute moved roughly $700M (including ~$200M BTC) onto Binance before the move, then liquidity on Binance vanished, altbooks went no-bid (ATOM, SUI, etc. went to literal pennies or fractions of a cent on some pairs), and then Wintermute allegedly pulled back instead of defending books. •That fed the narrative that “the MM blew up and pulled liquidity,” which amplified the cascade. But: Wintermute leadership publicly denied any bankruptcy/insolvency and said they were still operating. Multiple outlets said Wintermute basically paused quoting during the chaos — which alone can make order books implode — but did not confirm that the firm itself got margin-called into oblivion. So Wintermute is at the center of conspiracy / blame, but not confirmed “dead.” ⸻ 5. Did a big centralized exchange go under? •No exchange has declared insolvency from 10/10. •Binance is under heavy fire, though. Two reasons: 1.Binance let exotic collateral (USDe, wBETH, BNSOL) be used as margin, priced off Binance’s own books. When those assets locally depegged on Binance (USDe reportedly as low as $0.65 on Binance while closer to $1 elsewhere), that nuked collateral values and triggered hundreds of millions to ~$1B+ in forced liquidations inside Binance. 2.Traders claimed the platform partially froze while liquidation engines ran, and that order books went hollow, letting coins like ATOM and SUI flash-crash toward $0.001 on Binance spot. •Binance leadership said they’d compensate affected users for the depeg / liquidation edge cases and accelerate fixes (switching to oracle-based pricing for that collateral). So Binance didn’t “blow up,” but Binance’s margin model and risk engine are absolutely being blamed for lighting the fuse. ⸻