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- Binance launched a $283 million recovery program after a flash crash wiped billions, compensations completed within 24 hours.
- Trump’s tariff threat triggered a $19 billion wipeout, causing Bitcoin to plunge under $105,000 before partial recovery.
Binance has rolled out a $283 million recovery program following a severe market downturn that erased billions in investor holdings. The two-phase initiative was designed to compensate users who faced liquidations and delays caused by the brief depegging of stablecoins such as USDe, BNSOL, and WBETH.
Binance acknowledged that temporary glitches affected the pricing of assets tied to Binance Earn, leading to automatic liquidations when collateral values dropped.
The crash came after President Donald Trump announced plans to impose higher tariffs on Chinese goods, as reported by CNF. Within a single day, over $19 billion in leveraged positions were wiped out, and Bitcoin dropped below $105,000, dragging the wider market down.
Old Limit Orders Cause Binance Price Chaos
The exchange reported that sharp price swings in several spot pairs were linked to dormant limit orders from 2019. These old orders triggered during low-liquidity moments, causing sudden price spikes and a wave of large sell-offs.
Some trading pairs briefly showed “zero prices,” which Binance said happened because of recent changes to minimum price precision. The company explained it was only a visual glitch, not an actual trading error, and confirmed that API systems stayed fully functional.
The company said,
Binance remains committed to addressing these issues responsibly and transparently, as transparency has always been one of our core values.
Binance CEO Richard Teng issued a public apology and promised new measures to rebuild user trust and prevent future disruptions. He said,
We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better. Every case will be handled with the care and attention it deserves and compensation will be provided where applicable.
Binance completed all user compensation within 24 hours of the incident.
Crypto Market Rebounds but Risks Still Loom
Trump’s softer stance on trade policy sparked signs of recovery in the market. Bitcoin jumped 3.09% in 24 hours to around $115,297, while Ether rebounded to $4,185 after slipping below $3,500. Despite the partial recovery, many smaller tokens are still trading below their October 9 levels.
“The rebound is driven by a conciliatory message from Trump,” said Richard Galvin, co-founder of hedge fund DACM. However, He warned that the market remains sensitive to new trade-related headlines and could face renewed volatility throughout 2025.
Marco Lim, managing director of Solvent Holdings, raised concerns about structural weaknesses tied to Binance’s dominance in liquidity. He said,
My concern isn’t tariffs—it’s the systemic fragility around WBETH and Binance’s liquidity dominance.
Lim added the 10% drop in Bitcoin has already put pressure on Wrapped Ethereum’s liquidity. He warned,
If Binance remains the single point of failure for stablecoin flows, we’re one sharp correction away from a cascading unwind.
Sean Dawson from Derive echoed similar caution, saying that the bounce “doesn’t mean the danger has passed. This feels more like a recalibration, a pause before the next move.”
In contrast, veteran trader Peter Brandt turned optimistic, reversing his earlier bearish outlook and expressing optimism about Bitcoin, Ethereum, XRP, and XLM.
A few final posts for the weekend, then I will leave you youngsters with your dreams$XRP – just a minor reaction in bigger theme of things$BTC – bull still alive and well$XLM – a bull waking from a nap$ETH – ready to rock and roll
If I change my mind I won't let you know pic.twitter.com/rL1nVETYSn— Peter Brandt (@PeterLBrandt) October 11, 2025
