October 2025's blame game - Why the crypto crash was 'game theory' and Math in action
ambcrypto.com
When crypto markets collapsed in October 2025, the real culprit wasn't panic or greed — it was game theory and cold math playing out exactly as predicted.
Game TheoryNash EquilibriumReflexivity TheoryCascade Theory
Theory Briefing
- The October 2025 crypto crash is being framed not as irrational panic but as a predictable game-theoretic cascade among coordinated market actors.
- Crypto's deepening reliance on AI-driven trading may have amplified the collapse, turning algorithmic strategies into a self-fulfilling death spiral.
- When every player's dominant strategy is to sell, Nash Equilibrium theory predicts exactly this outcome — mass exit regardless of individual intent.