Wintermute CEO Evgeny Gayvoy denied rumors of a collapse after $19 billion in leveraged positions were wiped out in the October 10 cryptocurrency crash.
CEO refutes dispelled rumors
Wintermute co-founder and CEO Evgeny Gayvoy has publicly refuted rumors that began circulating early Saturday morning claiming that major market makers “collapsed” in the October 10 market crash. In his post on X, Gayvoy directly addressed the spate of social media reports that the size of the liquidation had “impacted” the company, insisting it was “business as usual” and Wintermute was “absolutely fine.”
Wintermute has found itself at the center of growing controversy amidst allegations of market manipulation by major players during one of the most tumultuous episodes in crypto history. As the market plummeted, critics pointed to Wintermute’s aggressive trading activity as evidence that it may have suffered significant losses.
Some analysts argued that the company’s actions, characterized by rapid declines and changes in liquidity, were not merely reactive but potentially indicative of more serious structural exposure. The timing and size of the trades have increased speculation that Wintermute’s actions may have amplified volatility, raising questions about the role of high-frequency market makers in destabilizing an already fragile situation.
size of liquidation
The cryptocurrency market flash crash wiped out over $19 billion worth of leveraged positions in 24 hours. According to Coinglass, more than 1.6 million traders liquidated their positions, with HyperLiquid exchange alone accounting for just over half of the total liquidations ($10 billion).
The sheer number of retail traders affected led to widespread anger and disgust, with many claiming on social media that large companies and centralized exchanges had colluded to disadvantage users. The market manipulation claims, along with reports of Wintermute’s demise, even prompted a reaction from Binance founder and former CEO Changpeng Zhao (CZ).
Meanwhile, reactions to Gayvoy’s post on X quickly highlighted historical similarities, with users likening his tone to Sam Bankman Freed’s misleading reassurances in the days leading up to the collapse of FTX and Do Kwon’s now infamous tweet of “Deploy more capital – solid young people” before the collapse of Terra.
These comparisons showed increased skepticism towards public statements made by crypto industry executives during moments of market stress. In response, Wintermute’s CEO acknowledged that such scrutiny was inevitable, and that part of his role was to combat unfavorable suspicions. He acknowledged that while transparency is important, changing public perceptions amidst heated debates is neither immediate nor guaranteed.
“It’s not saying anything. Evgeny hasn’t tweeted. He should be liquidated. He’s saying something. This is what a liquidated person would tweet,” the CEO explained.
