- Event leads to scrutiny of Binance amid allegations and liquidations.
- Binance faced criticism for market manipulation allegations.
- Investors concerned about lack of exchange transparency.
On October 10, 2025, widespread liquidations occurred across major crypto exchanges, including Binance, amidst extreme market volatility and accusations of potential market manipulation, leading to significant financial impact worldwide.
The event highlights systemic vulnerabilities in crypto exchanges, triggering calls for regulatory action and risking further volatility within the digital asset market.
On October 10, 2025, Binance faced intense scrutiny following a wave of liquidations during a highly volatile period. The crypto exchange’s operational issues, including frozen dashboards, triggered allegations of manipulation.
The incident involved major crypto exchanges, with Binance as a focal point. Star Xu of OKX criticized their practices, while Kris Marszalek of Crypto.com demanded independent reviews. As Star Xu put it, “When an exchange ‘steps onto the field’ by inflating token prices, using multiple affiliated identities, and exploiting user sentiment through hype campaigns, it erodes trust and ultimately destroys itself.”
The immediate impact included forced liquidations totaling $20 billion across exchanges. Markets and traders were severely affected as tokens like USDE, wBETH, and BnSOL experienced drastic price drops. Financial implications include scrutiny over Binance’s Unified Account system, which is believed to have contributed to the rapid depegging of tokens. This raised concerns regarding exchange transparency and risk management.
Binance’s response emphasized market-wide volatility rather than direct manipulation allegations. However, the community continues to call for increased transparency and regulatory oversight to prevent further disruptions. Potential outcomes include heightened regulatory interventions and increased scrutiny of centralized exchanges. Data-driven insights and historical events, such as FTX’s collapse, underscore the urgent need for improved risk controls within the industry.
