It’s theoretically possible but as the poster mentioned fairly difficult/rare outside of options, and even then those tend to be more like “vol book gone bad”,

It’s theoretically possible but as the poster mentioned fairly difficult/rare outside of options, and even then those tend to be more like “vol book gone bad”, “long term position gone bad”, and less like “hft MM strategy gone bad”. A bad strategy could lose 200k over the course of a day if allowed to run, but again I think the poster was referring to discrete events in a short period. Crazy events tend to be money printers outside of the initial bad trades since there’s a ton of volume, wide spreads, and general chaos following. Most MMs run taker strategies as well, and in fact many of the large ones make most of their money taking even if volume is evenly split.