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I hold a call warrant which will expire in 10 days. Why did the liquidity provider’s quote fall by 10% despite an increase in the price of the underlying by 1%?

Assuming all other factors remain constant, it is likely that the price of some out-of-the-money and extremely short term warrants is insensitive to the change in the price of the underlying (due to low delta). It is likely that the liquidity provider’s quote fell despite an increase in the underlying price as such extremely short term warrant was deeply affected by time decay (much more so than the change in the underlying price).