According to @QCompounding, the trader was blamed for the market crash, received death threats, and by 1934 was bankrupt again with assets of $84,000 and debts of $2.5 million, source: @QCompounding. The figures imply negative equity of about $2.416 million and a liability-to-asset ratio near 29.8x, quantifying severe solvency stress relevant to leverage and drawdown control, source: @QCompounding. For trading strategy, this timeline underlines the need for strict position sizing, liquidity buffers, and counterparty-risk checks in volatile markets, including crypto, to avoid forced liquidation when sentiment reverses, source: @QCompounding.

According to @ThinkingUSD, the 10/10 event lacked public clarity on what occurred, why certain users were compensated, and which accounts suffered major drawdowns, underscoring why DEXs are critical for crypto’s survival. Source: @ThinkingUSD The same source states that solvency at some centralized exchanges remains uncertain due to absent post-event disclosure and transparency. Source: @ThinkingUSD The source recommends shifting trading activity to a DEX and specifically choosing Hyperliquid to mitigate venue uncertainty and counterparty risk. Source: @ThinkingUSD

According to @KookCapitalLLC, an Oct 11, 2025 post on X alleges that Backpack does not know how to run a legal or solvent exchange and references the founder’s background at FTX with SBF (source: @KookCapitalLLC on X, Oct 11, 2025). The allegation is unverified and the post provides no supporting evidence, so traders should treat it as a claim while reassessing counterparty risk and custody concentration (source: @KookCapitalLLC on X, Oct 11, 2025; U.S. SEC Office of Investor Education and Advocacy, Investor Alert on crypto asset accounts, 2022). During exchange stress events, liquidity can thin and spreads can widen, increasing slippage and execution risk for spot and derivatives traders (source: Bank for International Settlements, reports on crypto market liquidity and amplification mechanisms, 2022–2023). Practical checks include monitoring on-chain flows from exchange-labeled wallets and observing order book depth, stablecoin pegs, basis, and funding rates for dislocations (source: Nansen documentation on exchange wallet tracking, 2023; CFTC advisory on crypto derivatives risks and leverage, 2022).