Uphold’s Dr. Martin Hiesboeck claims the October 10–11 sell-off was a targeted attack exploiting a flaw in Binance's Unified Account margin system, resulting in significant collateral depegging.
The October 10–11 crypto market crash, erasing ~$19–20 billion, is suspected to have been caused by a targeted attack that exploited a flaw in Binance’s Unified Account margin system. Collateral assets such as USDe, wBETH, and BnSOL had liquidation prices tied to Binance’s volatile spot market rather than external data, causing forced liquidations once they depegged. Binance has acknowledged the issue, offering compensation to affected users and committing to risk control enhancements. The sell-off was also triggered by a macro shock, following a tariff threat from President Trump against China, causing a ripple effect across crypto markets.