Bits + Bips: Crypto Had Its Reset. Will It Go to New Highs Now? - Ep. 924

Unchained

Laura Shin

Tech News, Business News, News

4.6 • 1.3K Ratings

🗓️ 14 October 2025

⏱️ 66 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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. Sponsors: Aptos Hosts: Ram Ahluwalia, CFA, CEO and Founder of Lumida Steve Ehrlich, Executive Editor at Unchained Guests: 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 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I think many people kind of realize on Friday that perps may not always be the strongest or safest instrument.
0:07.0	Sometimes liquidity is reduced automatically before like market makers can even react and reintroduce liquidity in the market,
0:14.0	which I think once again adds into the whole perfect storm dynamic.
0:18.0	What do you think I've got hyper liquid? Is? Is hyperliquid or winner or loser coming
0:21.7	out of this? I'm optimistic and bullish now. Hi, everyone. Welcome to another episode of Bits and Bips,
0:29.6	at the show where we explore crypto and macro colliding from one basis point at a time. This is a very
0:35.5	special episode, just given what's happened in the market over the
0:39.3	last almost 72 hours or so. Typically, we're trying to decide what we're going to talk about.
0:45.4	Dats, Trump, Fed policy, none of that is an issue today. We're going to discuss what happened on
0:51.5	Friday, lessons learned over the weekend, and more or less how crypto is going to respond moving forward.
0:59.0	Aptos is the no-compromise infrastructure for global financial markets, fast, reliable, and 100 times more cost efficient than other blockchains.
1:09.0	See for yourself why Aptos is the chain of choice for
1:12.0	institutions, users, and developers alike at the Aptos Experience, October 15th and 16th in Brooklyn.
1:19.8	But first, just a few quick introductions. I am your host, Steve Ehrlich, high scribe of the Unchained
1:25.0	Kingdom. I'm here as, with Ram Alawalia,
1:28.7	the Maistre of Wealth, leader of Lumida, and we've got two very special guests. So let's
1:34.9	introduce them quickly. First, we have Carlos Guzman, chief scholar of the seat of the GSR Citadel. So welcome,
1:42.6	Carlos. Hello, love the name.
1:45.0	Carlos, why don't you just briefly tell us a little bit about yourself.
1:48.0	I would imagine most of our viewers and listeners are familiar with GSR, one of the larger market makers in the space.
1:55.0	Yeah, sure thing. So I'm a research analyst at GSR. We're a big market maker across exchanges, centralized exchanges and centralized exchanges in crypto.
2:04.2	Also big OTC desk and systematic OTC desk.
	...

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