Wintermute denounces the scapegoats in the explanations of market volatility

screenshot_gains · 2026-02-15T07:11:31+00:00

Evgeny Gaevoy, founder of Wintermute, criticized the tendency to blame single entities for market volatility, emphasizing that recent market fluctuations stemmed from significant macroeconomic factors and not technical issues. He advocates for a nuanced understanding of market dynamics to foster resilience instead of scapegoating.

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2026-02-15 07:11:31

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Evgeny Gaevoy, founder of the trading firm Wintermute, shared his concerns on social media in late January, criticizing the trend of looking for scapegoats to explain recent market turbulence. According to information relayed by BlockBeats, industry leaders often misjudge the true causes of volatility by oversimplifying, which fuels a flawed understanding of market mechanisms.

The true origins of volatility beyond simplistic explanations

Gaevoy clarified that the sharp market movements in October were not due to a supposed software bug. He explained that these fluctuations were rather the result of major macroeconomic news that occurred on a Friday night marked by particularly low liquidity. In these fragile market conditions, pressures intensified, triggering a flash crash in an overleveraged financial environment. This sequence of clearly identifiable events transformed into a crisis.

A highly polarized market reacting irrationally

Wintermute’s founder acknowledged the general frustration caused by bearish phases, especially when most asset classes are gaining while the crypto sector plunges. Instead of calmly analyzing structural factors, many succumb to the temptation of blaming a single scapegoat—accusing a particular platform or market actor.

Why looking for a scapegoat hinders honest analysis

Gaevoy firmly rejected this reductive approach. He believes that blaming a single trading platform is an dishonest and superficial assessment of the situation. True market understanding requires recognizing the complexity: interactions of insufficient liquidity, excessive leverage, exogenous shocks, and herd behavior all play a role. Continuing to seek a scapegoat prevents the community from learning real lessons and genuinely strengthening resilience.

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