Why Might a Market Maker Intentionally Target a Lower Fill Rate in a Highly Volatile Crypto Options Market?

In high volatility, market prices can move rapidly and unpredictably, increasing the risk of adverse selection and hedging costs. A market maker may intentionally target a lower fill rate by widening their spreads to be more selective, only executing trades that offer a larger premium to compensate for the elevated market risk and the increased difficulty of effective hedging.