Odaily News Benson Sun, a crypto KOL and former FTX community partner, wrote an analysis on the X platform, saying, “At 18:30 today, ACT suddenly crashed by 50%. The reason was that Binance adjusted the leverage position limit of ACT. A maximum of 4.5 million USD can be opened with a leverage of 1x. Some market makers’ positions exceeded the limit and were directly closed at the market price. After the contract price collapsed, a huge price gap appeared with the spot price, and the spot price also collapsed.
Binance released the announcement at 15:32 on April 1, and it took effect at 18:30 on April 1, leaving users with less than 3 hours to react. What’s even more outrageous is that Binance had already released an announcement on March 31 to modify the position limit of ACT, and on April 1, the position limit for low leverage was cut by another 50%.
Before changing the rules, Binance should first assess how many positions will be liquidated. If there are market makers with large positions, they should also notify them in advance. As an industry leader, I hope Binance can handle this incident properly.”