Ethena’s USDe briefly traded as low as $0.65 on Binance and about $0.92 on Bybit during the October 10-11, 2025 crypto sell-off, before moving back toward its $1 peg. Curve, Uniswap and Fluid showed deviations below 0.3%, indicating the sharp dislocation was concentrated on specific centralized venues rather than across the token’s broader market. Ethena Labs and multiple traders attributed the episode to Binance’s thin internal orderbook, distorted oracle pricing and disruptions affecting deposits and withdrawals, which limited normal arbitrage. Despite the volatility, Ethena’s mint and redeem functions processed more than $2 billion in redemptions within 24 hours. USDe’s supply exceeded $12 billion after reaching near or above $14 billion amid accumulation linked to earlier Binance reward programs. Ethena later published an emergency Proof of Reserves report showing approximately $66 million in overcollateralization, while the wider market recorded about $19 billion in liquidations. The incident shows that venue-specific liquidity and settlement access can cause losses even when the underlying protocol continues operating normally.