Binance pins crypto’s worst-ever liquidation day on macro risks, not exchange failure
Binance blamed the October 10 flash crash on a macro shock colliding with heavy leverage and evaporating liquidity, rather than any breakdown in its trading systems following speculative chatter on social media.
In a report released Saturday, the exchange said global markets were already under pressure following trade-war headlines when crypto markets cracked. Bitcoin and ether had rallied for months into early October, leaving traders heavily positioned and exposed.
At the time, open interest across bitcoin futures and options exceeded $100 billion, creating conditions ripe for forced deleveraging once prices started to fall, it said.
The selloff quickly fed on itself. As prices slid, market makers activated automated risk controls and…
