Crypto Crash: Binance Flaw and $19B Loss
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 fast.
While many blamed stablecoins or market panic, new details reveal that the collapse was not random, but rather started with a flaw in Binance's collateral system, exacerbated by global market tension.
- A dump of $60-90 million worth of USDe, wBETH, and BNSOL on Binance initiated the chain reaction.
- These assets were allowed as collateral in Binance's Unified Account feature, which used internal market data for valuation, creating a blind spot for exploitation.
Attackers used the gap to crash USDe's value on Binance to around $0.65, while it remained stable elsewhere.
Author's summary: Binance flaw sparks $19B crypto crash.