Dragonfly Partner: The market crash on October 11th was not solely caused by Binance and Ethena; multiple factors combined to trigger the volatility.

PANews reported on January 31 that Haseeb Qureshi, Managing Partner of Dragonfly, commented on recent claims that the October 11 market crash was triggered by Binance and Ethena, stating that this narrative is untenable in terms of timeline, market propagation path, and evidence. He pointed out that Bitcoin's price bottomed out approximately 30 minutes before the USDe anomaly occurred on Binance, clearly reversing the causal relationship; furthermore, the USDe price deviation only occurred on Binance and did not spread to other trading platforms, failing to explain the large-scale liquidation across the entire market, and is fundamentally different from events like Terra that caused global balance sheet shocks.

Haseeb believes a more plausible explanation is a combination of factors: Trump's tariff rhetoric disrupted the market on Friday night, Binance API anomalies prevented market makers from hedging across platforms, liquidation and ADL mechanisms amplified volatility, and the crypto market lacks traditional financial circuit breakers and self-stabilizing mechanisms, ultimately causing the market to evolve along an unfavorable path. He emphasizes that there is no simple, conspiratorial "single culprit" behind 10/11; while the market suffered a severe blow, it has not been permanently damaged in the long run, and only needs time to restore liquidity and confidence.