Who will they return anything to, are you laughing? I tried to write to technical support, no one will return anything, almost everything has already returned to how it was, ordinary people are left with nothing!
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BeInCrypto Global
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Binance Spends $283 Million Cleaning Up Weekend Market Chaos
Binance has announced it will compensate users a total of $283 million following collateral asset depegging incidents during the October 10 market crash.
The exchange blamed a mix of thin liquidity, long-dormant limit orders dating back to 2019, and UI display errors.
Binance Pays $283 Million To Affected Users: All You Need to Know
In the official statement shared late Sunday, the exchange articulated that the event was “macro-driven volatility,” not a platform failure.
Binance acknowledged that global macroeconomic stress led to concentrated sell-offs by institutional and retail traders, triggering sharp price declines across crypto markets.
While users speculated that Binance’s systems might have malfunctioned, the exchange said its futures and spot matching engines, as well as API trading, remained fully operational throughout the event.
“Forced liquidation volume on Binance accounted for a relatively low proportion of total trading activity,” read an excerpt in the announcement.
Still, Binance confirmed that some assets, including USDe, BNSOL, and WBETH, briefly depegged due to the market shock. This situation liquidated some users’ positions that had used these tokens as collateral.
The company said it moved quickly to compensate affected users within 24 hours, distributing two batches of payments totaling approximately $283 million.
“Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses. Compensation has been distributed in two batches, totaling approximately USD 283 million,” the exchange said.
What Really Happened? Legacy Orders and “Zero Price” Glitches
Further, in a detailed post-mortem, Binance revealed that part of the confusion stemmed from legacy limit orders still active on certain spot pairs, some of which had been open since 2019.
During the sell-off, low liquidity conditions caused these old limit orders to execute at extreme prices on pairs such as IOTX/USDT and ATOM/USDT, temporarily creating the illusion of flash crashes.
To complicate matters, UI display errors emerged after Binance adjusted tick size settings, which were the smallest allowable price movements on some trading pairs. This caused prices to display as zero in the interface, though the exchange clarified that actual executions and API data remained correct.
Binance said it has now resolved these display issues and will continue optimizing its systems to prevent similar confusion.
The company reiterated its user-first principle, promising ongoing transparency and updates for those still submitting compensation claims.
It also clarified that the depegging of Earn products did not cause the crash. Instead, it followed after the broader market downturn.
“We remain committed to addressing these issues responsibly and transparently,” Binance said.
The episode marks one of Binance’s largest recent compensation efforts. It highlights the delicate balance exchanges must maintain between liquidity management and system resilience in a market that never sleeps, even when TradFi does.
The exchange blamed a mix of thin liquidity, long-dormant limit orders dating back to 2019, and UI display errors.
Binance Pays $283 Million To Affected Users: All You Need to Know
In the official statement shared late Sunday, the exchange articulated that the event was “macro-driven volatility,” not a platform failure.
Binance acknowledged that global macroeconomic stress led to concentrated sell-offs by institutional and retail traders, triggering sharp price declines across crypto markets.
While users speculated that Binance’s systems might have malfunctioned, the exchange said its futures and spot matching engines, as well as API trading, remained fully operational throughout the event.
“Forced liquidation volume on Binance accounted for a relatively low proportion of total trading activity,” read an excerpt in the announcement.
Still, Binance confirmed that some assets, including USDe, BNSOL, and WBETH, briefly depegged due to the market shock. This situation liquidated some users’ positions that had used these tokens as collateral.
The company said it moved quickly to compensate affected users within 24 hours, distributing two batches of payments totaling approximately $283 million.
“Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses. Compensation has been distributed in two batches, totaling approximately USD 283 million,” the exchange said.
What Really Happened? Legacy Orders and “Zero Price” Glitches
Further, in a detailed post-mortem, Binance revealed that part of the confusion stemmed from legacy limit orders still active on certain spot pairs, some of which had been open since 2019.
During the sell-off, low liquidity conditions caused these old limit orders to execute at extreme prices on pairs such as IOTX/USDT and ATOM/USDT, temporarily creating the illusion of flash crashes.
To complicate matters, UI display errors emerged after Binance adjusted tick size settings, which were the smallest allowable price movements on some trading pairs. This caused prices to display as zero in the interface, though the exchange clarified that actual executions and API data remained correct.
Binance said it has now resolved these display issues and will continue optimizing its systems to prevent similar confusion.
The company reiterated its user-first principle, promising ongoing transparency and updates for those still submitting compensation claims.
It also clarified that the depegging of Earn products did not cause the crash. Instead, it followed after the broader market downturn.
“We remain committed to addressing these issues responsibly and transparently,” Binance said.
The episode marks one of Binance’s largest recent compensation efforts. It highlights the delicate balance exchanges must maintain between liquidity management and system resilience in a market that never sleeps, even when TradFi does.
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee. See T&Cs.