He definitely did mean MTS. You are correct, it is absolutely crazy that DM continually increases their losses, day after day, week after week, but it is simply the truth, it is how the minds of the majority work in our world. And as far as i know, they basically have no other option but to lose, as no matter what they try, the SM algo will move against them/cause them to lose in the end.
This also happens because what we know as “DM” is not as simple as a person/algorithm making trades based off of indicators or analysis or anything. The true large scale “DM” are massive entities that are exchanging currencies globally, such as governments, corporations, hedge funds and large investment firms etc, rather than trying to trade for profit as we do.
I know I am not 100% correct, but its close I think.