Binance pins crypto's worst-ever liquidation day on macro risks, not exchange failure

Binance released a report stating that the severe crypto flash crash on October 10, which resulted in massive liquidations, was primarily caused by a macro risk-off shock colliding with heavy leverage and evaporating liquidity, rather than failures within its trading systems. Global markets were already under pressure from trade-war headlines when crypto prices cracked, leading to forced deleveraging across over $100 billion in open interest in Bitcoin futures and options. The selloff was exacerbated as market makers activated risk controls, causing bid-side depth to nearly vanish on major exchanges. This systemic liquidation was mirrored in traditional markets, with U.S. equities losing an estimated $1.5 trillion. Binance acknowledged two platform-specific incidents—a slowdown in its internal asset-transfer system and temporary index deviations for certain assets—but asserted these occurred after the majority of liquidations had already taken place. The exchange compensated affected users with over $328 million.

(Source：CoinDesk)