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You mean FTX?
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Yes, typo.
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much more was at risk as a percentage of market size, market was in worse shape,
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Though in that case the crash was directly due to "effectively altruist" SBF fraudulently dumping customer assets in a half-brained and presumably stimulant-addled attempt to manipulate the market and reduce his liabilities.

Not making any market predictions here-- just saying that it's probably not that useful to generalize from that event.

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I think the point is more that when something bad happens in markets it creates fear, which generally leads to downturns (for at least some time).
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