Crypto Crash: Binance Flaw and $19B Consequences
A $90M dump of USDe on Binance triggered a $19B global crypto crash after traders exploited a pricing flaw.
Crypto traders witnessed prices plummet on October 11 in one of the year's most chaotic crashes, with billions vanishing in hours and confusion spreading rapidly.
While many blamed stablecoins and market panic, new details reveal that the collapse was not random, but rather started with a flaw in Binance's collateral system, exacerbated by global market tension.
According to ElonTrades on X, the chain reaction began when roughly $60–90 million worth of USDe, wBETH, and BNSOL was dumped on Binance.
- Those assets were allowed as collateral in the platform's Unified Account feature.
- The feature valued them using internal market data instead of external oracles, creating a blind spot large enough to exploit.
Attackers utilized this gap to crash USDe's value on Binance to around $0.65, while it remained stable on other platforms.
Author's summary: Binance flaw triggers $19B crypto crash.