World markets tumbled on October 10 after US President Donald Trump introduced a 100% tariff on Chinese language imports, triggering panic throughout equities and digital belongings.
Inside minutes, a cascade of pressured liquidations erased practically $20 billion from crypto merchants’ positions.
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System Glitch or Market Manipulation?
The turbulence unfold shortly by means of main centralized exchanges. Customers on Binance and different platforms reported frozen dashboards, failed stop-loss triggers, and flash crashes that briefly despatched a number of tokens towards zero.
The disruptions sparked frustration throughout buying and selling communities. Many merchants questioned whether or not the crypto exchanges’ programs had malfunctioned or if deeper market manipulation was at play.
Contemplating this, Crypto.com CEO Kris Marszalek known as for an impartial evaluate of exchanges that skilled the heaviest liquidations throughout the market crash. He stated billions in customers’ funds vanished in a single day, and regulators should act to guard them.
Regulators ought to look into the exchanges that had most liquidations within the final 24h and conduct a radical evaluate of equity of practices. Any of them slowing right down to a halt, successfully not permitting individuals to commerce? Had been all trades priced accurately and consistent with indexes?… pic.twitter.com/UCD6iKuKFQ
— Kris | Crypto.com (@kris) October 11, 2025
In the meantime, OKX CEO Star Xu weighed in by not directly blaming Binance for the market state of affairs.
In accordance with him, when an alternate “steps onto the field” by inflating token costs, utilizing a number of affiliated identities, and exploiting consumer sentiment by means of hype campaigns, it erodes belief and in the end destroys itself.
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Xu’s feedback additionally recalled previous controversies—most notably FTX’s 2022 collapse. Notably, the defunct alternate had accused Binance of accelerating its downfall with public statements and a rushed withdrawal of help.
“‘Fired the shot’ that took down FTX may have succeeded in eliminating a competitor, but what followed wasn’t an expansion of their own market share — it was a systemic collapse of the entire industry, and a series of even more dramatic ‘lives.’ In that chain reaction, there were no real winners,” Xu stated.
Was Binance Focused Throughout Market Collapse?
In the meantime, crypto KOLs like Wu Blockchain alleged that the crash could have been brought on by vulnerabilities in Binance’s Unified Account system.
This method permits customers to publish totally different belongings—together with USDE, wBETH, and BnSOL—as collateral for leveraged trades. When these belongings lose their pegs, margin necessities quickly improve, triggering a sequence of automated liquidations.
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So, because the collateral values plunged—USDE to $0.65, wBETH to $0.20, and BnSOL to $0.13—many merchants on the crypto alternate noticed their positions worn out regardless of hedging methods.
It added that algorithmic bots additional accelerated the downturn by executing promote orders throughout exchanges, intensifying volatility.
The wave of failures renewed long-standing considerations over alternate transparency and liquidity practices, notably in periods of utmost stress.
“Another piece of evidence suggesting the attack was premeditated is the timing—it occurred precisely between Binance’s announcement of an oracle price adjustment and the actual implementation. The announcement was made on October 6, with the change scheduled for October 14, providing attackers with a clear window of opportunity,” Wu Blockchain reported.
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Yesterday, BeInCrypto additionally famous a whole lot of tweets from customers who had been unable to commerce, withdraw their belongings, and even activate stop-loss throughout the market crash.
Amid all these points, Binance has apologized to its impacted customers and promised to reimburse them.
In a press release, Binance co-founder Yi He blamed the state of affairs on “extraordinary market turbulence and user surges” that disrupted regular operations.
He promised a case-by-case evaluate for customers who may show they suffered technical losses. Nevertheless, she clarified that unrealized income or price-driven losses wouldn’t qualify for compensation.
“The reason Binance is Binance is that we never shy away from problems. When we fall short, we take responsibility—there are no excuses or justifications. We are committed to serving every user to the best of our ability, and we will manage what we are responsible for,” she added.
