Crypto just went through its biggest crash.

In the wake of “Black Friday,” when $19 billion in positions were wiped out in hours, Bits + Bips hosts Steve Ehrlich and Ram Ahluwalia are joined by Carlos Guzman of GSR and YQ of AltLayer to dissect what really happened.

Was it a coordinated attack exploiting Binance’s oracles? A failure of market structure? Or simply too much leverage waiting for a trigger? Or some combination of the three? The group breaks down how liquidity vanished, why hedges failed, how this flash crash echoed the worst moments of traditional markets, and why the industry urgently needs reform before it happens again.

Aptos

Ram Ahluwalia, CFA, CEO and Founder of Lumida

Steve Ehrlich, Executive Editor at Unchained

Carlos Guzman, Research Analyst at GSR 

YQ, Co-founder of AltLayer

Timestamps:

🔥 0:00  Introduction and ads

⚡ 3:22  First reactions to crypto’s biggest crash ever

💥 5:55  The USDe depeg on Binance. Plus: coordinated attack or market failure?

🧠 12:57  Why Ram calls it a potential “zero-day hack”

📉 15:38  Are perpetuals the riskiest instruments in crypto?

💫 18:38  Huge spreads, no liquidity: where were the market makers?

🏦 22:59  The eerie parallels to a flash crash in U.S. equities 15 years ago

💀 25:01  How both longs and shorts got wrecked, and why perps fail as hedging tools

🔧 29:00  What crypto needs to fix its liquidity problem

🏛️ 33:34  How TradFi solved this years ago, and what crypto can learn

⚖️ 36:25  How systemic leverage makes every crash worse

📜 42:16  Why this proves crypto urgently needs a market structure bill

🚀 47:13  Why Ram says Hyperliquid came out as the winner

🔮 50:14  Outlook for prices and volatility in the coming days

🛡️ 1:00:04  Will insurance funds rise after this?

⏳ 1:02:18  Why YQ says it’ll take a long time to recover from the damage

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