The oil and gas volatility index experienced an extreme event today. It first surged sharply, then collapsed instantly—dropping 17% in less than 2 minutes. This flash crash-style extreme volatility actually reflects an extreme liquidity event in the derivatives market. For traders focused on macroeconomic factors, the extreme fluctuations in commodities often spill over into the entire risk asset market, including cryptocurrencies. Whether this is a technical liquidation or a fundamental turning point remains to be seen with further developments.

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