On October 12, Evgeny Gaevoy, co-founder and CEO of market maker Wintermute, took to X to refute rumors that the firm had collapsed during the Oct. 10 crypto market crash. In a concise post, he insisted it was “business as usual” and that Wintermute was “perfectly fine,” directly addressing a flood of social media claims alleging massive liquidation had ruined the firm.
$19B Liquidation and Market Turmoil
According to data from Coinglass, the flash crash wiped out over $19 billion in leveraged positions within 24 hours, affecting more than 1.6 million traders. The Hyperliquid exchange alone accounted for roughly half of the total—$10 billion—triggering widespread anger among retail investors who accused large players and centralized exchanges of collusion.
Wintermute Under the Microscope
Wintermute’s aggressive trading activity during the crash—marked by rapid sell-offs and liquidity shifts—drew scrutiny from analysts who questioned whether the firm’s behavior was merely reactive or indicative of deeper structural exposure. Critics argued that high-frequency market makers can amplify volatility in already fragile conditions, raising systemic concerns. The speculation quickly escalated into outright rumors of Wintermute’s collapse.
Historical Echoes: FTX and Terra
Reactions to Gaevoy’s post on X drew sharp historical parallels. Users likened his tone to the misleading reassurances issued by Sam Bankman-Fried before the FTX collapse, or Do Kwon’s infamous “Deploying more capital—steady lads” tweet before Terra’s implosion. The comparisons underscored a growing skepticism toward public statements from crypto executives during market stress. Acknowledging the inevitability of such scrutiny, Gaevoy explained the executive’s dilemma: “Not saying anything: Evgeny doesn’t tweet, must be liquidated. Saying something: This is what somebody who is liquidated would tweet.” His remarks highlight the challenge of restoring trust once rumors take hold.
Industry Responses
Binance founder Changpeng Zhao (CZ) also responded to the broader market manipulation allegations, though his specific comments were not detailed in the report. The Wintermute saga continues to fuel debate over the role and transparency of major market makers during extreme volatility.