Crypto Crash: Binance Flaw and $19B Consequences
A $90M dump of USDe on Binance triggered a $19B global crypto crash after traders exploited a pricing flaw.
Crypto traders witnessed prices plummet on October 11 in one of the year's most chaotic crashes, with billions vanishing in hours and confusion spreading rapidly.
Many attributed the crash to stablecoins or market panic, but new details reveal it was not a random collapse.
- A single flaw in Binance's collateral system, combined with global market tension, set off the chain reaction.
- Roughly $60-90 million worth of USDe, wBETH, and BNSOL was dumped on Binance, exploiting the platform's internal pricing mechanism.
According to ElonTrades on X, the chain reaction began when those assets were allowed as collateral in the platform's Unified Account feature.
The internal pricing created a blind spot, allowing attackers to crash USDe's value on Binance to around $0.65, while it remained stable elsewhere.
Author's summary: Binance flaw triggers $19B crypto crash.