Binance responds to ACT flash crash: It was caused by concentrated selling by large investors, no manipulation was found

Odaily News Binance official account @BinanceHelpDesk responded to users on the X platform. According to the announcement, the incident was mainly caused by three VIP users selling tokens worth about $514,000 in the spot market, and a non-VIP user transferring in and quickly selling ACT tokens worth $540,000 from an external platform. The related selling behavior triggered the forced liquidation of some futures contracts and caused a chain reaction in the market.
Binance said that after investigation, no single account was found to have made large profits through this incident. Since all relevant tokens have been circulated in the secondary market, the platform cannot interfere with normal market transactions. To prevent risks, Binance has recently proactively lowered the leverage multiple of the ACT/USDT perpetual contract and emphasized that it will continue to improve market liquidity through the market maker program.
According to previous news, ACT’s 50% flash crash in a short period of time caused heated discussions in the community.