A critical concept that most economists overlook, yet seasoned traders grasp instinctively: positive feedback loops driving market dynamics. Hyman Minsky would remind us that these aren't mysterious forces—they're predictable mechanisms embedded in market structure. The gap between academic theory and trader intuition lies precisely here. Understanding how self-reinforcing cycles amplify both bull runs and drawdowns separates institutional insight from surface-level analysis. This principle shapes everything from leverage spirals to liquidity events.

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AirdropChaservip
· 18h ago
Manipulating positive feedback loops can indeed make money, but when they break, it's worse than anyone else.
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HashRatePhilosophervip
· 01-05 06:51
Minsky has long said that the market is a self-fulfilling prophecy; once the leverage spiral starts, no one can stop it.
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BackrowObservervip
· 01-04 07:27
Economists who talk about theory on paper should really listen to what Minsky has to say; the market feedback loop is no longer a black box.
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MondayYoloFridayCryvip
· 01-03 10:54
Minsky's stuff has long been played out; real profit still depends on the combination of reflexivity and liquidity traps... Now all these new rookies are still studying positive feedback, by the time GPT figures it out, it'll be too late.
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ProofOfNothingvip
· 01-03 10:54
Minsky's theory should have been included in textbooks long ago, but academia just refuses to admit that traders' intuition is sometimes more accurate than formulas...
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DefiEngineerJackvip
· 01-03 10:52
minsky's instability hypothesis lowkey predicted every crypto cycle we've had lmao. problem is most defi devs still building without accounting for these feedback loops—then act shocked when their "optimal" contracts blow up. formally verifying your liquidation mechanisms would've saved half the protocols that imploded ngl
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MoonlightGamervip
· 01-03 10:38
The system Minsky described is indeed brilliant. The people at Academy just can't understand why positive feedback is so aggressive... Traders have long seen through it.
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BearMarketBarbervip
· 01-03 10:26
Minsky's theory indeed hits the mark, but truly profitable trading still relies on intuition... No matter how beautiful the paper is, it's not as satisfying as a single correct all-in move.
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