Binance has released a comprehensive statement addressing the extreme volatility that struck global crypto markets on October 10, 2025, which led to widespread liquidations and a temporary loss of market stability. The company confirmed that while its core futures and spot trading systems remained functional, certain modules experienced brief technical glitches amid one of the most turbulent hours in recent trading history.
Between 20:50 and 22:00 (UTC), both institutional and retail traders executed mass sell-offs following global macroeconomic announcements, including new U.S. tariff measures against China. The resulting shock triggered a wave of forced liquidations totaling nearly $20 billion, making it one of the largest deleveraging events ever recorded. Binance stated that its platform accounted for only a “relatively low proportion” of that total, underscoring that the volatility was driven primarily by external market conditions rather than any internal malfunction.
Following the incident, Binance’s internal review confirmed short-lived issues across certain modules, including temporary lags in fund transfers, minor delays in Earn product redemptions, and de-pegging events involving USDE, BNSOL, and WBETH. The exchange clarified that these de-peggings occurred after the main market crash, not before it, and therefore did not cause the broader sell-off.
To protect users, Binance distributed approximately $283 million in compensation to those affected by the de-pegging events and delayed redemptions. Compensation was completed in two phases within 24 hours of the incident. The exchange also confirmed it will reimburse verified users who faced additional losses tied to internal transfer delays during the extreme volatility.
Binance’s postmortem analysis also explained why certain tokens appeared to crash to near-zero levels on charts. The exchange identified legacy limit orders dating back as far as 2019 that were triggered in low-liquidity conditions, briefly distorting prices. A display glitch also contributed to the “zero price” readings in some pairs, which the company has since corrected.
In its statement, Binance reaffirmed its commitment to transparency and user protection, promising continued communication as the review process concludes. The exchange said it is implementing system upgrades to further enhance resilience under stress, improve user interface accuracy, and strengthen internal risk controls to ensure greater stability during future market shocks.
