Social media sentiment continues to show in opposition to Binance for its alleged position in crypto liquidations on October 10.
Instantly after October 10, merchants had been already threatening authorized motion. Nonetheless, this yr, new lawsuits and arbitrations look to be underway, together with quite a few different complaints and authorized setbacks.
A easy chart of crypto asset costs illustrates the rationale for the dogpile of complaints in opposition to Binance.
Whole crypto market capitalization vs. S&P 500 and Nasdaq 100. Supply: TradingView
October 10 auto-deleveraging
Because the world’s largest crypto alternate, Binance had a novel position to play in October 10.
For instance, flash-crash costs as little as 99.9% existed solely on the alternate on that date, and it had simply modified its pricing feeds and therapy of a serious stablecoin, Ethena USDE.
Wintermute CEO Evgeny Gaevoy referred to as Binance’s auto-deleveraging costs “very strange,” whereas Ark Make investments’s Cathie Wooden blamed billions in crypto liquidations on a Binance “software glitch.”
A put up with tens of millions of impressions additionally referred to as out errors in Binance’s pricing oracles for cross-margin unified accounts.
Ethena USDE performed a very essential position in Binance’s October 10 liquidations. After crashing to lower than $0.67 on Binance, USDE has regained its $1 peg however has shed greater than half its market capitalization since 10/10.
No complexity. No accident.
10/10 was attributable to irresponsible advertising campaigns by sure corporations.
On October 10, tens of billions of {dollars} had been liquidated. As CEO of OKX, we noticed clearly that the crypto market’s microstructure essentially modified after that day.… pic.twitter.com/N1VlY4F7rt
— Star (@star_okx) January 31, 2026
Binance makes an attempt to revive confidence
With out admitting to duty, Binance nonetheless rapidly — and voluntarily — agreed to pay enormous sums of cash to clients that suffered losses on that date.
Shortly after the occasion, Binance introduced $328 million in compensation plus one other $400 million value of loans and vouchers.
In one other try restore confidence amid the bearish knock-on results of October 10, Binance introduced in late January 2026 that it could use its complete $1 billion SAFU (Safe Asset Fund for Customers) emergency reserve to purchase bitcoin (BTC) over a 30-day interval.
It has not helped a lot. The large BTC purchase did not win again its fans-turned-critics, with detrimental matters about Binance nonetheless trending on social media on an almost every day foundation.
As strain continues to construct over the alternate’s position within the historic liquidation occasion, founder Changpeng Zhao has blamed faux social media and unrelated bitcoin merchants for bearishness.
He additionally tried to divert blame from Binance onto Donald Trump for the crash, saying, “It’s pretty clear that the tariff announcements preceded the crash, not Binance system issues or Binance doing anything.”
