The sudden market downturn that shook the crypto market this week may have been the result of a coordinated attack directed at Binance, according to Forgiven, an executive from the Conflux (CFX) network.
In a post shared on X, the executive alleged that the incident exposed structural flaws that allowed cascading liquidations across major trading pairs.
1011大暴跌主任推测是一次有预谋的针对Bn和Bn某主要做市商的攻击,而阿喀琉斯之踵就在币安的统一账户合约保证金的问题上.
除了正常U本位和币本位可以保证金外,Bn也放开了pos衍生物和理财型稳定币做统一保证金的选项。这次被攻击最严重的三个保证金标的分别是USDE, Wbeth和BnSol.… pic.twitter.com/fWLXqqQLQO
— Forgiven (@forgivenever) October 11, 2025
Related: CoinGlass Accuses Binance of Underreporting Liquidations in Trump-Induced Crypto Crash
How the Exploit Hit Binance’s Margin System
Forgiven explained that Binance’s architecture lets traders use a mix of collateral, from USD- and coin-margined contracts to staking derivatives and stablecoin-linked tokens, all under one umbrella account.
That flexibility turned risky when markets swung violently. As USDe, BNSOL, and WBETH lost their pegs, the collateral values collapsed, triggering forced liquidations across retail and institutional positions.
Depegs Trigger Chain Liquidations
Binance data showed USDe fell to $0.65 on the exchange versus $0.90 elsewhere. WBETH dropped to $0.20, and BNSOL crashed to $0.13, wiping out leveraged accounts.
Because margin values were tied to live spot prices instead of fixed references, the losses compounded rapidly.
Forgiven noted that several altcoins plunged on Binance alone – a sign that a major market-maker’s hedged portfolio had been wiped out.
Loss Estimates and Structural Weakness
Trading volume for USDe, WBETH, and BNSOL reached $3.5 billion to $4 billion within 24 hours.
Forgiven estimated the resulting profit-and-loss swing at $0.5 to $1 billion. If Binance compensates users, its total payout could land in that range.
The crash also coincided with the exchange’s 12% USDe wealth-management program, which let users loop loans through lending products, magnifying exposure as collateral prices fell.
Call for Stronger Risk Controls
The Conflux executive said the event showed how financial innovation can outpace risk safeguards.
He urged Binance and other exchanges to rebuild liquidation logic and strengthen margin collateral checks before similar shocks spread through the market again.
“Unified systems are efficient until volatility turns them into contagion channels,” he warned.
Related: Crypto Markets Bleed as Trump Escalates Tariff War With China
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
