Dragonfly Partner Refutes "Binance+Ethena Caused 10/11 Crash" Narrative, Suggests Systemic Failures More Likely Culprit

Odaily News Dragonfly Managing Partner Haseeb Qureshi published a commentary addressing recent claims that the "10/11 market crash was triggered by Binance and Ethena," stating that this narrative is difficult to substantiate based on the timeline, market transmission path, and available evidence. He pointed out that the Bitcoin price had already bottomed out approximately 30 minutes before the anomaly with USDe occurred on Binance, indicating a clear reversal of the alleged cause-and-effect relationship. Furthermore, the USDe price deviation was isolated to Binance and did not spread to other trading platforms, making it incapable of explaining the widespread large-scale liquidations across the entire market. This situation is fundamentally different from events like Terra, which caused a global balance sheet shock.

Haseeb believes a more plausible explanation involves the convergence of multiple factors: former President Trump's tariff remarks unsettling the market on Friday evening, Binance API anomalies preventing market makers from cross-platform hedging, liquidation and ADL mechanisms amplifying volatility, and the crypto market's lack of traditional finance-style circuit breakers and self-stabilizing mechanisms. These factors ultimately allowed the market to evolve along an unfavorable path. He emphasized that there is no simple, conspiratorial "single culprit" for the 10/11 event. While the market suffered significant damage, it has not been permanently impaired in the long term and merely requires time to restore liquidity and confidence.