Bitcoin slides in Oct. 10–11 crash; $19B liquidations

Macro shocks and leverage, not Binance, drove the October 2025 crypto crash

the october 10–11, 2025 selloff was a market-wide event, with roughly $19 billion in leveraged positions liquidated. According to CoinDesk, the drawdown followed macro headlines including new U.S. tariff announcements.

Global uncertainty also spiked. As reported by TheStreet, the World Uncertainty Index hit a fresh all‑time high, surpassing levels seen during 2001 and the 2008 crisis, compounding risk‑off behavior.

Binance vs macro shocks: Richard Teng’s stated position

Against that backdrop, Binance leadership has argued venue-specific issues were not the trigger. According to Bloomberg, Co‑CEO Richard Teng characterized the cascade as a crypto‑wide deleveraging driven by external shocks.

He contrasted macro drivers with exchange blame during subsequent remarks. “The october 11 crash affected all exchanges; Binance was not the root cause,” said Richard Teng, Co‑CEO at Binance.

The immediate impact was severe across venues, but Binance experienced discrete disruptions. As reported by CryptoPrune, the exchange acknowledged module‑level issues, including UI delays, transfer bottlenecks, and abnormal pricing in certain wrapped assets.

One focal point was the usde depeg that printed near $0.65 on Binance while remaining close to $1 elsewhere. According to Crypto.ro, Ethena Labs linked the gap to a venue‑specific oracle approach and stressed that arbitrage was impeded.

Some traders also alleged they were unable to reduce exposure during the volatility. Forbes reported locked‑out sessions, failed “reduce‑only” attempts, and price deviations materially wider than on peer platforms.

Binance has countered that its core matching engine, risk controls, and clearing remained operational. According to CryptoNews.net, the firm said problems were limited to certain overloaded modules rather than systemic failures.

On user remediation, Binance stated that verified losses tied to technical faults, not market moves, would be reviewed for compensation. Yi He, the company’s co‑founder, described this distinction when addressing post‑event claims.

At the time of this writing, Coinbase Global (COIN) traded near $161.04, up about 10% on the day, based on data from Yahoo Finance. This context does not imply any investment view.

FAQ about the October 2025 crypto crash

Did Binance cause the 19 billion liquidations, or was it broader stress?

Attribution points to macro shocks and market leverage driving the cascade across exchanges. Binance-specific glitches amplified some user losses but evidence indicates it was not the root cause.

Why did USDe depeg on Binance and not on other exchanges?

Ethena Labs attributed the Binance-only depeg to venue-specific oracles and frictions that limited arbitrage. Other venues referenced broader liquidity, helping USDe hold closer to $1 during stress.