I believe this was the “Leopold Bottom.” In Girardian terms, panic feeds on itself while losses remain diffuse: every seller validates the next, and fear becomes self-reinforcing because no one knows where it ends.
Leopold has become the market’s identifiable sacrificial victim. Once his positions were liquidated and its losses became bounded, the crisis could be perceived as belonging to one actor rather than the entire sector. By giving the market a victim, the downward mimetic spiral may have finally exhausted itself.
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