Previously, @tarunchitra's article might have been difficult for some to understand, but @Haiteng_okx (TengEO) provided a very good explanation: why any contract exchange needs insurance funds and ADL (Advance Loss Calculation). Back in 2018, these two things were basically nonexistent. Experienced investors might recall that margin calls and forced liquidations were common occurrences. This is because, whether a contract is executed or forcibly liquidated, it essentially requires an equal-sized reverse order. Simply put, if a position is forcibly liquidated, but the position is too large and there aren't enough reverse orders, the remaining position will result in a net loss unless someone takes over. At that time, the loss was spread among everyone. Later insurance funds, or Hyperliquid's HLP, essentially take over liquidated positions when there's a gap, absorbing margin calls in extreme cases. ADL and early liquidation are risk control mechanisms to provide a safe buffer for insurance funds, allowing liquidation to be profitable without incurring margin call losses. In 2018, contract products were far less sophisticated than they are now, and exchanges used manual risk control. Placing large orders and failing to cancel them after warnings is essentially profiting at the exchange's expense. This is similar to how rapidly pumping and dumping short positions in off-exchange small-cap cryptocurrency contracts (actually causing losses to the exchange's fund) can lead to account suspension, regardless of the exchange – including HL's JellyJellyJelly disconnecting the network. So don't be overly sympathetic; to be fair, this is at most a limitation of the times, not a problem with OKX.