Between October 10 and 11, the crypto market was thrown into chaos, triggered by a massive liquidation wave and record trading volumes far exceeding the capacity many exchanges, including Binance, were used to.
With Binance, there were delays and system strains. Now that the dust has settled, the exchange has voluntarily promised to compensate users for the disruption, particularly focusing on issues related to the stablecoin USDe and staking tokens BNSOL and WBETH.
Binance commits to making affected traders whole
In response to the disaster that hit the market between October 10 and 11, Binance co-founder and Chief Customer Service Officer Yi He has issued a public apology via X (formerly Twitter). She announced the exchange’s plans to compensate users whose losses were directly attributable to platform issues, rather than normal market fluctuations.
“Binance will handle the issues related to Binance,” she wrote, while emphasizing that there would be no compensation for “personal trading losses caused by price fluctuations or unrealized losses.”
Teng’s message was more heartfelt, beginning with an acknowledgment of the turbulent past day and an apology to those impacted.
“We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better,” he added. “If you’re still experiencing any unresolved issues, please reach out to our Binance Support team. Every case will be handled with the care and attention it deserves, and compensation will be provided where applicable.”
Teng ended the message by pointing out that volatility is a part of the market, encouraging users to stay informed and cautious during these times.
What happened to Binance during the mayhem?
As earlier stated, Binance experienced significant platform strain during the period of extreme market volatility that caused delays in order execution, API latency spikes, and display issues for users—particularly impacting staking products, stablecoins, and futures trading.
The unprecedented trading volumes led to a massive liquidation cascade across the crypto sector, wiping out approximately $19.3 billion in leveraged positions globally and affecting more than a million traders.
The Binance platform was one of the hardest hit, as it accounted for about $2.3 billion of the total liquidations. Its native token was not spared either; the volatility influenced rapid market movements, leading to an almost 10% dump in BNB.
So far, only Binance has mentioned anything about compensation; while the general consensus on the timeline was that there was strain during the thick of it, no other exchange has acknowledged it.
On October 11, the founder and CEO of OKX took to X with a message that read: “Today’s market fluctuations, OKX’s global risk control system has operated stably, with the platform maintaining smooth and steady performance across all regions, and all system indicators remaining at normal levels. OKX will continue to provide stable and reliable services to global users 7×24 hours.”
Traders sharing their experiences on X do not agree with the executive, though, as impacted traders demanded investigations, alleging CEX manipulation and demanding lawsuits against non-responsive exchanges. Arthur Hayes also implied that there was more to the liquidations other than market volatility, while Crypto.com’s CEO called for regulators to look into the events of the day, as Cryptopolitan reported.
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