š° A year after the 10/11 crash, what people still canāt agree on isnāt āhow much Binance paid out,ā but what exactly that money was compensation for.
Around $19 billion in leveraged positions were liquidated in a single day. CZ said Binance voluntarily set aside about $800 million to compensate users; Xu Mingxing countered that tens of billions of dollars in market losses shouldnāt be turned into a reason for self-congratulation. Put the two accounts side by side, and thereās still no universally accepted answer on how responsibility should be apportioned.
š„ More importantly, the compensation didnāt cover every loss. The first $283 million Binance distributed was for users whose positions were forcibly liquidated after USDe, BNSOL, and WBETH depegged. The rules limited eligibility to a specific window from 05:36 to 06:16 on October 11; losses caused purely by market volatility werenāt covered. The article notes that around 75% of liquidations occurred before the relevant indices deviatedāwhich means most liquidations werenāt covered by this compensation program.
š” The subsequent āTogether Initiativeā totaled $400 million. Of that, $300 million was distributed in USDC to eligible users, with each person receiving around 4,000 to 6,000 USDC; the other $100 million was in low-interest loans that have to be repaid. Adding these amounts to the earlier compensation brings the total to more than $728 million, but $100 million of that wasnāt compensation. The figure may look substantial, but usersā experiences of it clearly vary widely.
š The timeline around whether the crash was caused by a Binance system issue was later revised, too. Cathie Wood once linked the flash crash to a Binance software failure, but later clarified that the Binance outage happened after the plunge, while tariff fears and market fragility amplified the impact. Xu Mingxing pointed to the high-yield USDe product that had been promoted earlier, while other industry figures have offered different views on that explanation.
š¤ Honestly, the hardest thing to sort out in this debate may not be how much money was paid out in total, but who should be responsible for which losses. Do you think platform compensation should be limited to clearly defined outage windows, or should platforms also bear responsibility for losses caused by cascading liquidations?
#1011ę“č· #åøå® #OKX #CryptoMarket
Around $19 billion in leveraged positions were liquidated in a single day. CZ said Binance voluntarily set aside about $800 million to compensate users; Xu Mingxing countered that tens of billions of dollars in market losses shouldnāt be turned into a reason for self-congratulation. Put the two accounts side by side, and thereās still no universally accepted answer on how responsibility should be apportioned.
š„ More importantly, the compensation didnāt cover every loss. The first $283 million Binance distributed was for users whose positions were forcibly liquidated after USDe, BNSOL, and WBETH depegged. The rules limited eligibility to a specific window from 05:36 to 06:16 on October 11; losses caused purely by market volatility werenāt covered. The article notes that around 75% of liquidations occurred before the relevant indices deviatedāwhich means most liquidations werenāt covered by this compensation program.
š” The subsequent āTogether Initiativeā totaled $400 million. Of that, $300 million was distributed in USDC to eligible users, with each person receiving around 4,000 to 6,000 USDC; the other $100 million was in low-interest loans that have to be repaid. Adding these amounts to the earlier compensation brings the total to more than $728 million, but $100 million of that wasnāt compensation. The figure may look substantial, but usersā experiences of it clearly vary widely.
š The timeline around whether the crash was caused by a Binance system issue was later revised, too. Cathie Wood once linked the flash crash to a Binance software failure, but later clarified that the Binance outage happened after the plunge, while tariff fears and market fragility amplified the impact. Xu Mingxing pointed to the high-yield USDe product that had been promoted earlier, while other industry figures have offered different views on that explanation.
š¤ Honestly, the hardest thing to sort out in this debate may not be how much money was paid out in total, but who should be responsible for which losses. Do you think platform compensation should be limited to clearly defined outage windows, or should platforms also bear responsibility for losses caused by cascading liquidations?
#1011ę“č· #åøå® #OKX #CryptoMarket