A collection of some thoughts on the FTX meltdown over the last few days.

What happened? Out of $16 billion in customer assets, $10 billion was loaned to Alameda for trading. When Alameda Research was margin-called, and users tried to withdraw their funds from FTX, the money wasn't there.

People are still piecing together what happened and where the $10 billion hole came from. Signs seem to point to FTT, a token used by FTX to provide loans and liquidity to Alameda. With high fully diluted value (FDV) and low circulation, FTX was lending much more margin to Alameda than it seemed. The contagion continues to grow with the numerous companies funded or bailed out by SBF in the last few months.

Some early reflections.