Nested leveraging is a common theme. Each layer is leveraged and but supposedly protected by another layer's risk management.

Go through enough layers and you eventually hit an insurer that has zero chance of being able to cover all of the losses of everyone. It could be CDS of CDOs of CDOs, or coins being backed by other coins.

Thankfully the average person is less affected by crypto losses than mortgages, or in the case of the depression, stocks.