What Is the Practical Implication of High Gamma for a Market Maker in Volatile Crypto Options?

For a market maker, high Gamma implies high "jump risk" and increased transaction costs. High Gamma means the Delta of their inventory changes rapidly, forcing them to execute frequent trades in the underlying asset to maintain a Delta-neutral book.

In volatile crypto markets, this frequent re-hedging incurs high trading fees and slippage, making inventory management expensive and risky.