Part 9/15:
Lessons from the Past & Strategic Takeaways
This event echoes the lessons learned during the COVID crash and the aftermath of FTX’s collapse—whenever leverage is wiped out quickly, markets tend to rebound strongly. In this case, despite the scale, no major exchange failed, and no protocol defaulted, indicating systemic resilience.
The key takeaway is that leverage is extremely dangerous in such volatile conditions. Many traders were wiped out for holding high leverage on altcoins, which suffered disproportionately during the cascade. As Credible Crypto explained, margin calls on collateralized assets forced a chain reaction—exacerbating the fall but leaving the broader system intact.