OKX CEO blames irresponsible USDe yield campaigns for October flash crash

OKX CEO Star Xu countered Binance's explanation for the October 10 crypto flash crash, asserting that the event, which caused over $19 billion in liquidations, stemmed from irresponsible marketing campaigns tied to USDe. Xu argued that these campaigns normalized hidden, hedge-fund-level risk by treating USDe, which he considers fundamentally riskier than tokenized money market funds like BUIDL or BENJI, as interchangeable with stablecoins like USDT and USDC for collateral. This encouraged leverage loops where users chased high yields (reaching over 70% APY), leading to a rapid breakdown when volatility rose and USDe depegged. Xu stressed that while he is discussing systemic risk, Binance bears an outsized responsibility for market stability, noting the market microstructure fundamentally changed after the crash.

(Source：Crypto Briefing)