A sudden and severe downturn of over 90% hit various altcoins traded on Binance, leading to a dramatic market shake-up. The causes are debated, but rumors point towards automated liquidation mechanisms triggered by sharp price drops in cross-margin trading. Experts like Arthur Hayes believe this event may not be as frequent as it appears to indicate. While several altcoin prices saw swift and significant drops, the crash was not limited to a select few; numerous tokens experienced steep declines before rebounding. The abrupt nature of these sudden crashes has raised questions about potential risk control vulnerabilities within major exchanges such as Binance. Arthur Hayes, co-founder of BitMEX, suggested that centralized exchanges may have triggered forced liquidations based on pre-programmed rules when certain altcoin prices fell sharply, leading to cascading selling pressure and price slumps across the market. These events occurred without prior warning, which has raised significant concerns about risk management protocols within major exchanges. Despite the chaos, Hayes believes many high-quality altcoins are unlikely to reach such low levels again anytime soon, suggesting that these drops might have been technical anomalies rather than true market value indicators. As the crypto market continues to evolve and mature, it’s important for traders to be aware of the inherent risks associated with margin trading on centralized platforms. They should review their margin settings and risk exposure when interacting with such exchanges.