The crypto derivatives market underwent a significant transformation in 2025 following the October 10-11 crash, according to a BitMEX report. The crash led to the largest liquidation event in crypto history, with $20 billion in leveraged trades forcibly closed. Unlike previous market downturns, the losses primarily affected sophisticated market makers rather than retail traders. The report highlights a "microstructure failure" among crypto exchanges, emphasizing the impact of the ADL Feedback Loop on liquidity providers. Post-crash, market makers withdrew liquidity globally in Q4, resulting in the thinnest order books since 2022. This highlights the critical role of derivatives in maintaining price stability. The report also notes overcrowding in funding-rate arbitrage, with rates dropping below 4%, and a "trust crisis" in crypto derivatives markets due to platforms canceling profitable trades during volatility. Additionally, decentralized perpetual exchanges are growing, but they pose new risks as trading positions are publicly visible on blockchains.