>the advocacy of a small government is exactly _more_ situations like FTX.
Arguably not true. The presence of large government and pervasive regulation may behave like the bike helmet paradox (Where cyclists feel they are able to take more risk while wearing a helmet, and motorists drive more carefully around helmet-less riders). Smaller gov in this case may lead to individuals feeling less like the government has vetted xyz investment opportunity and therefore may feel a need to do their own due diligence more thoroughly.