The Problem With Crypto – Part3: UNREGULATED DERIVATIVESThey called it freedom.
“No KYC. Just your wallet. Total decentralization.”
To me it sounds like an invitations to scammers, inside traders, Americans and others from 'restricted areas' to jump into the casino...... Leverage is BAD to begin with, imagine how WORSE it can be when it's without any rules or regulations or supervision, nor ethics....
Anyways, question is: what happens when “freedom” becomes the perfect cover for the biggest 'insider trades' in crypto history?
🧨 The Timeline
📅 Oct 9, 2025 — A massive Bitcoin short opens.
📅 Oct 10, 2025 — Ethereum short follows.
📅 Moments Later — Trump announces 100% tariffs on China.
📅 Minutes Later — Bitcoin and altcoins start crashing 50–90%.
📅 Hours later — The short closes with $190M profit.
Someone knew.
Someone always knows.
🧩 The Hidden Mechanism
This is where it gets twisted.
Platforms like Aster, Hyperliquid, and Apex (Bybit) are marketed as decentralized —
but their matching engines are off-chain.
“On-chain transparency” only starts after settlement.
The manipulation happens before that — deep inside invisible order books.
🧠 Oracle prices — controlled by insiders.
⚙️ Liquidation triggers — programmed by them.
💰 Profits — recycled through synthetic USDT pools.
Welcome to DeFi’s Centralized Era —
where decentralization is the marketing, not the mechanism.
⚖️ Regulation (or the Illusion of It)
Even in decentralized systems — there must be rules.
Without some form of transparency, oversight, or code-based accountability,
DeFi becomes nothing more than a digital jungle —
where market makers, insiders, and exchanges can steal under the banner of “freedom.”
If we keep calling that decentralization, then we’re just hostages —
held by the same bad actors we once tried to escape.
We don’t need more centralization.
We need on-chain regulation — logic, limits, and light that keeps the casino honest.
🕳 Why This Matters
Because when leverage meets latency, even “on-chain” systems can be weaponized.
And if billion-dollar whales use these unregulated derivatives to front-run macro events,
then what we’re looking at isn’t decentralization —
it’s an unregulated casino disguised as DeFi.
🎬 Next Episode: The geopolitical layer — who really benefited from the 10/11 crash, and what it means for the next phase of crypto. We are getting into the juicy part next!
One Love my fellow Crypto Junkies!
Yours, The FX Professor💙
ps. When the dust settles I will be sharing very interesting facts, we all going to connect the dots together and yes my friends: We WILL Save Crypto!
-What happens when scammers land stolen funds in (Mm)EXChanges? They protect the 'privacy policy' (like Mr CZ says he would never violate user policy' until authorities come in place... do they co-operate?
related news to today's Part3: www.tradingview.com
