Everyone’s talking about @Backpack, but few actually read what happened Yesterday, the market crashed. People were losing money in seconds, charts bleeding red In that chaos, a quote went viral, “if you get liquidated, your deposit goes to pay winners.” Ngl, it sounded terrible And it spread instantly But it’s not what you think When the market nuked, a lot of traders went negative and their balance dropped below zero That’s how perps work, in extreme volatility, the system can’t close fast enough, and some accounts fall into bad debt A few of those traders reloaded funds too early. They deposited again before the system had time to reset And when they did, the deposit was automatically used to settle their debt. Not stolen or missing, just the system doing its job If they had waited a bit, their balance would have appeared normally. But we know that panic doesn’t wait. And when communication fails during panic, narratives win over facts. That’s what happened here The system worked. The words didn’t. The quote that went viral was @armaniferrante explaining the mechanism, not a policy. But stripped of context, it became a headline. “Backpack takes user money.” And in crypto, people remember feelings more than facts. Here’s the truth No user funds were lost No clawbacks No socialized losses Proof of reserves still public, daily What failed wasn’t solvency, it was timing and communication There’s a lesson here, for everyone building in the open. Transparency isn’t just code and proofs, it’s language. And when language lags behind chaos, even the best system looks wrong