Trader Benson: Binance Bears Responsibility in 10·11 Incident, But USDe Was Not the Core Trigger

Odaily News Trader Benson commented on the severe market volatility event of October 11th, stating that Binance does bear some responsibility for the incident, but the core issue does not lie with USDe. He pointed out that, based on the timeline, when the market hit its lowest point at 5:20, USDe only experienced a slight depeg. The significant drop to $0.65 occurred at 5:54, which was about 30 minutes after the market had already begun to rebound. This suggests that the extreme depeg of USDe was more likely a secondary effect following the severe volatility, rather than the direct cause of the crash.

Benson further analyzed that the real anomaly occurred between 5:18 and 5:20, when a massive price dislocation appeared between Binance and other exchanges. On that day, over half of the cryptocurrencies reached their lowest prices across all markets on Binance, with some deviations as high as 50% or even 100%. Furthermore, the USDT trading pairs for the same tokens were significantly lower than their USD trading pairs on Binance, a phenomenon never seen in previous black swan events. He believes that, reasoning from the outcome, it is more likely that a systemic issue occurred at Binance's end, rather than being solely caused by market makers withdrawing liquidity. He called for the industry to engage in more thorough and public discussions about the event, taking advantage of the opportunity presented by Binance's own post-mortem report.