Attack on Binance? Crypto meltdowns are starting to rhyme
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Today’s subject is an unsolved mystery of crypto market microstructure. We only have so many facts, and we’ll likely never know all the details.
To get up to speed with the fundamentals of what happened over the weekend, I recommend the Empire livestream from Sunday with Doug Colkitt, as well as Doug’s helpful X thread on Auto-Deleveraging.
For those wanting the quick and dirty headline summary, here goes.
For some silly reason, Binance was using spot prices to value three tokens accepted as collateral for margin positions — liquid staking derivatives wBETH and BNSOL, alongside Ethena’s synthetic dollar USDE.
Not exactly a…
