According to @LexSokolin, crypto is rediscovering counterparty risk and liquidation cascades, flagged in a Nov 11, 2025 post linking to a ChainRisk note on X, drawing trader focus to leverage-driven spillovers across venues. source: @LexSokolin Traders should review exchange and prime-broker counterparty exposure, margin schedules, collateral haircuts, and rehypothecation policies before deploying leverage to reduce forced-liquidation vulnerability. source: CFA Institute BIS research shows that procyclical margining and high leverage can accelerate fire-sale dynamics, supporting the case for lowering leverage and sizing positions relative to maintenance margin to curb cascade risk. source: Bank for International Settlements Regulatory guidance emphasizes segregated client asset protections and diversification across counterparties to mitigate single-point-of-failure risk when counterparty stress rises. source: International Organization of Securities Commissions Monitoring open interest, funding rates, and on-chain liquidation thresholds can help identify leverage build-ups and stress early across centralized and DeFi venues. source: Coin Metrics

According to @WatcherGuru, less than two weeks after Jim Cramer told investors to buy crypto, the market suffered one of its biggest crashes. Source: Watcher.Guru on X, Oct 10, 2025. For trading, abrupt drawdowns after high-profile calls typically coincide with volatility spikes and cascading liquidations on derivatives venues, amplifying downside for leveraged positions. Source: Binance Futures documentation on liquidation and auto-deleveraging. Practically, de-risk by lowering leverage, using limit orders to mitigate slippage when liquidity thins, and monitoring funding rates and open interest for signs of crowded positioning. Source: CFTC customer advisories on digital asset trading risks and Binance Academy guides on funding rates and open interest. While some may frame this as an inverse Cramer signal, note that Tuttle Capital launched ETFs SJIM and LJIM to express such views, highlighting interest but not guaranteeing persistent alpha. Source: Tuttle Capital Management announcement March 2023.