Two days after a number of altcoins on Binance crashed to zero, the cryptocurrency alternate issued an announcement right this moment (Monday), blaming the incident on a “show problem”.
Digital property meet tradfi in London on the FMLS25.
Manipulation or a Glitch?
IoTeX, Cosmos, and Enjin are amongst a number of cryptocurrencies whose worth on Binance hit $0 final Friday. Nevertheless, their values have been a lot larger than $0 on different centralised crypto exchanges on the similar time.
“Sure buying and selling pairs (corresponding to IOTX/USDT) just lately diminished the variety of decimal locations allowed for minimal worth motion, inflicting the displayed costs within the person interface to be zero, which is a show problem and never as a consequence of an precise zero worth,” Binance famous.
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The assertion got here amid a collection of allegations of market manipulation on Binance by trade consultants.
“Binance will optimise the UI show and apply UI show corrections for associated irregular costs,” the alternate continued.
Manipulation of USDe, wBETH and BNSOL started round 21:14 UTC.You may zoom in on the minute chart of $SUI, $ATOM or every other altcoin and see the correlation. For folks saying the depeg/manipulation occurred after alts bottomed. Nonsense. You need to zoom in, these items… pic.twitter.com/1fBPfEoT5l
— ElonTrades (@ElonTrades) October 12, 2025
The Largest Crypto Liquidation
The weekend crypto flash crash resulted within the liquidation of $19 billion in crypto positions, which is the best in historical past.
The market additionally witnessed the depegging of USDE, BNSOL, and WBETH. Ethena’s USDe artificial greenback dropped to $0.65. In response to Binance, “the intense market downturn occurred earlier than the depegging.”
Binance additionally mechanically bought off collateral altcoins to cowl losses, making a suggestions loop that pushed costs down quickly. The alternate later introduced that it had paid out $283 million to cowl losses from Friday’s depegging.
The crypto alternate additional defined that the one-sided liquidity problem additionally triggered the intense sell-off through the turbulent hours.
“Historic restrict orders (some courting again years, so far as 2019, e.g., IOTX, ATOM) had remained open on the platform,” Binance added. “In the course of the excessive market sell-off and the shortage of shopping for orders, promote orders continued to execute towards these long-standing restrict orders, pushing token costs to drop sharply for a short while.”
Whereas Binance blamed the UI glitch and one-sided liquidity for the sudden drop in costs, Crypto.com’s CEO, Kris Marszalek, referred to as for a regulatory investigation into exchanges that confronted heavy liquidity points, with out naming Binance.
This text was written by Arnab Shome at www.financemagnates.com.
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