Tom Lee Explains How a Stablecoin Glitch Triggered Bitcoin’s October Crash

In an interview with CNBC, veteran crypto analyst Tom Lee revealed the chain reaction that sparked Bitcoin’s sharp decline following a significant price drop on October 10th. According to Lee, the chaos began when a stablecoin on a major exchange suddenly plunged in value, collapsing to just $0.65 due to what he described as an internal pricing error. This unexpected decline triggered the platform’s ADL (auto-deleverage) mechanism, which forced exchanges to unwind open positions automatically.