• Binance co-founder Yi He addressed rumors following the market crash, confirming stable core systems.
• The exchange compensated users with over $283 million after collateral asset depegging.
• Binance linked sudden price drops to legacy limit orders and display glitches, not system manipulation.

Following one of 2025’s most volatile trading days, Binance’s Co-Founder Yi He publicly dismissed rumors that the exchange had triggered the market crash or suffered system-wide downtime.

The crash, which took place between October 10 and 11, led to a wave of forced liquidations across exchanges. Binance clarified that while some modules experienced minor lags, its core contract and spot matching engines remained fully operational.

Yi He stated that speculation about Binance’s involvement in the crash was unfounded. Data showed that the proportion of forced liquidations on the platform stayed at a normal level compared to its total trading volume.

The sharp market decline, she explained, was driven by global macroeconomic factors that caused both institutional and retail investors to exit positions abruptly.

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Binance Pays $283M to Users After Depegging Issue

Binance verified that it made full compensation to affected users from depegged collateral assets, approximately $283 million in 24 hours from the incident.

The depegging that hurt products based on USDE, BNSOL, and WBETH came after the market downturn, not before it, as some had claimed.

The company stated that slight delays in internal transfer and redemption procedures didn’t allow some users to replenish their margins on time, causing them to be liquidated.

Those substantiated losses were also reimbursed. Binance reiterated that all the compensation cases are being dealt with openly and will be dealt with until the condition of each user is resolved.

Yi He reiterated that the faults of Binance would never shy away from taking the blame, but re-emphasized that losses from usual market fluctuations could not be compensated.

Binance Explains Price Anomalies Linked to Legacy Limit Orders

Explaining issues of unusual spot price fluctuations, Binance blamed the irregularities on stale limit orders lodged years ago, some as far back as 2019, which were activated because of low liquidity when the sell-out happened.

The orders briefly sent token prices lower in pairs such as IOTX/USDT and ATOM/USDT.

Further, a display malfunction resulted in zero prices on some trading pairs because of a tick size adjustment, but execution was not impacted. Binance already fixed the problem and assured that API operations were never halted.

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