OKX CEO: Binance’s USDe Yield Campaign Caused the October 10 Crash

OKX CEO Star Xu publicly accused Binance of causing the October 10 crypto market crash, which wiped out nearly $19 billion, by irresponsibly marketing Ethena's USDe synthetic dollar. Xu argued that Binance's campaign, which offered a high 12% yield and allowed USDe to be used as collateral like traditional stablecoins, encouraged excessive leverage, creating a systemic fragility that collapsed under stress. He claimed this leveraged loop artificially inflated USDe's APY, and when volatility hit, the resulting unwinding of leverage caused a cascade of liquidations. However, industry figures like Dragonfly's Haseeb Qureshi and Ethena Labs founder Guy Young rejected this narrative, presenting order book data suggesting the USDe deviation on Binance occurred *after* Bitcoin had already bottomed. Binance countered that the crash was due to a market-wide "liquidity vacuum" where Bitcoin liquidity was near zero, causing mechanical selling, rather than issues with its product offerings.

(Source：BeInCrypto)