Binance News: Why the ‘Binance–Ethena’ Narrative Fails to Explain the Oct. 10 Crypto Market Crash?

Key Insights

• In the latest Binance news, Star Xu blamed a 12% USDe campaign and leverage loops for the crypto market crash.
• Haseeb rejected the Binance–Ethena narrative, citing timing gaps and Binance-only USDe moves.
• Wintermute’s Gaevoy backed Binance, calling it macro-driven amid illiquid trading and API stress.

The October 10 crypto market crash narrative has returned to the spotlight after public disputes. According to Binance news, several industry figures are now challenging claims that a Binance USDe campaign drove the meltdown.

The debate grew after OKX CEO Star Xu blamed “irresponsible marketing campaigns” for 10/10. Xu said Binance offered 12% APY on USDe. He also said Binance allowed USDe as collateral, like USDT and USDC. He wrote that limits and risk warnings were not effective.

Binance News: Binance Faces Backlash for Crypto Market Crash

Xu described USDe as a “tokenized hedge fund” product. He wrote that users converted USDT and USDC into USDe for yield.

He also wrote that users used USDe as collateral to borrow USDT. Then, he said, users converted borrowed USDT back into USDe.

As per the Binance news, Xu said this cycle created leverage loops and higher implied yields. He cited “artificial” APYs of 24% and 36%. He also said APYs exceeded 70% at points. Xu wrote that systemic risk built across global markets during the loop.

Xu said the USDe depegged quickly when volatility spiked. He said that the liquidations continued to cascade throughout the market.

He also mentioned the weaknesses of the risk management of WETH and BNSOL. Xu added that there was a moment when a few tokens traded at zero.

Xu reported that it severely affected users and firms, including OKX customers. He also said it would take time to recover.

Meanwhile, Xu mentioned that OKX may encounter misinformation and coordinated FUD.

Crypto Market Crash Details

Following the Binance news, Haseeb challenged the “Binance–Ethena” framing and called it “candidly ridiculous.” He said the timing does not line up. He wrote that BTC bottomed about 30 minutes before USDe moved on Binance.

He argued USDe could not have caused the liquidation cascade.

He also pointed to the venue’s behavior during the crash on Binance news. He said USDe price diverged only on Binance. He added that other venues did not show the same divergence. Yet, he said, liquidations hit across exchanges.

On that account, he contended that the USDe move did not propagate across markets. He compared this to Terra, which he claimed depegged all over. He also cited 3AC and FTX as crises with global balance-sheet implications.

Haseeb also questioned the timing of Xu’s post. He explained that the data on the order book is no longer a secret and that it has been more than 4 months.

He contended that Xu had not introduced any new evidence after the previous examination. He had stated that the framing resembled a tussle with CZ.

Wintermute Backs the Binance News and Disputes “Glitch” Framing

Wintermute founder Evgeny Gaevoy also defended Binance during the blame dispute. He challenged claims from Cathie Wood, Star Xu, and others. He wrote, “Kind of wish public figures would pick words more carefully.”

Gaevoy rejected the idea that a “software glitch” explains the event. He wrote that the market saw a flash crash. He described a “mega leveraged” market on an illiquid Friday night.

Gaevoy also said macro news drove the move. Haseeb offered a separate sequence tied to macro shock and platform stress.

He wrote that Trump tariff threats spooked markets on a Friday evening. He said crypto became “the only thing to trade” as risk sold off. He then wrote that Binance APIs went down amid heavy activity.

He claimed that the API failure caused price dislocations and prevented rebalancing. He said that liquidation engines continued shooting irrespective of fills.

He also added that ADLs were triggered extensively and that hedges were broken. He also said that market makers were wiped out and were unable to stabilize alts.

Binance denied that it was the cause of the crash. Binance co-founder Yi He reacted to the Binance news, noting that whales who trade on Binance understand more about what happens when the tide goes out.

She also gave the suggestion that Wood was not fit for one of the posts that have since been deleted. In that post, she was described as not a platform user.