Dragonfly Partner Refutes Claim That "Binance + Ethena Caused the 10/11 Crash," Suggests Systemic Failure Overlap More Likely

Odaily News Dragonfly Managing Partner Haseeb Qureshi addressed recent claims that the "10/11 market crash was triggered by Binance and Ethena" in a post, stating that this narrative is difficult to substantiate in terms of timeline, market transmission path, and evidence. He pointed out that Bitcoin's price had already bottomed out approximately 30 minutes before the anomaly with USDe on Binance, indicating a clear reversal of causality. Furthermore, the USDe price deviation occurred only on Binance and did not spread to other trading platforms, failing to explain the large-scale liquidations across the entire market. This is fundamentally different from events like Terra, which caused a global balance sheet shock.

Haseeb believes a more plausible explanation is the overlap of multiple factors: Trump's tariff remarks disturbed the market on Friday evening, Binance API anomalies prevented market makers from hedging across platforms, liquidation and ADL mechanisms amplified volatility, and the crypto market lacks traditional financial circuit breakers and self-stabilizing mechanisms. Ultimately, this caused the market to evolve along an unfavorable path. He emphasized that there is no simple, conspiratorial "single culprit" for the 10/11 event. Although the market suffered a severe blow, it has not been permanently damaged in the long term and only requires time to restore liquidity and confidence.