Bitcoin fell as USDe depegged in Oct. 10–11 liquidation wave

Answer: Binance wasn’t root cause; market-wide unwind drove the crash

The October 10–11, 2025 crypto crash was a market-wide deleveraging that hit multiple venues simultaneously. Binance pushed back on claims it triggered the event, arguing the shock was broader than any single platform.

Roughly $19 billion in leveraged positions were wiped out across crypto markets during the episode, as reported by Bloomberg. While USDe showed a depeg on Binance order books, cross-exchange liquidations indicate systemic leverage and thin liquidity were the primary drivers.

Why it matters for exchanges, traders, and market structure

For exchanges, the episode spotlights risk controls: robust margin models, clearer collateral eligibility for yield-bearing tokens, and calibrated circuit breakers that slow feedback loops. Evgeny Gaevoy, founder of Wintermute, framed the selloff as a market-wide leverage unwind during illiquid hours catalyzed by macro headlines.

Yi He, Binance co-founder, said core matching engines and APIs remained stable despite UI lags and that compensation was paid on affected accounts. “Far-fetched,” said Changpeng Zhao, founder of Binance, dismissing claims that the exchange caused the crash.

In the immediate aftermath, forced liquidations swept through perpetuals and spot-margin books, USDe depegged on Binance, and cross-venue stress rose as liquidity receded. Automated mechanisms such as auto‑deleveraging and margin calls accelerated the move once thresholds were breached.

At the time of this writing, Coinbase Global (COIN) last closed at 165.12 and traded 166.19 overnight on Blue Ocean ATS, based on data from Nasdaq. These figures provide context, not forward guidance.

Crash timeline and liquidation mechanics, explained

Timeline consensus: BTC move preceded Ethena (USDe) depeg on Binance

Analysts seeking causality focused on sequence. Haseeb Qureshi, Managing Partner at Dragonfly Partners, argues Bitcoin had already bottomed roughly 30 minutes before USDe materially depegged on Binance, and that the USDe deviation was largely exchange‑specific.

Why ADL, leverage, and thin liquidity amplified the cascade

During high‑volatility windows, thin order books magnify every liquidation. Auto‑deleveraging prioritizes position reductions at risk thresholds, which can force sales into illiquidity. Dr. Martin Hiesboeck of Uphold has suggested unified‑margin collateralization of yield‑bearing assets like USDe may have amplified stress, though not as the root trigger.

FAQ about October 10–11, 2025 crypto crash

What is the timeline of the crash, did USDe depeg first or did Bitcoin’s drop start the liquidation cascade?

Most analyses place Bitcoin’s decline first; USDe’s depeg on Binance followed during the cascade.

Were Binance’s matching engine or APIs down during the crash, and were affected users compensated?

Binance co-founders said core matching and APIs held; some UI modules lagged, and affected users received compensation.