Binance released a report on the "1011" market crash, acknowledging two technical glitches, but stating they were not the main cause of the decline.
PANews reported on January 31st that Binance released a review report on the market flash crash on October 11th, 2025. The report stated that the main drivers of the market turmoil on October 11th, 2025, included macroeconomic shocks, market maker risk control mechanisms, and Ethereum network congestion. Individual platform issues were not the cause of the flash crash. The widely mentioned de-pegging of three tokens (USDe, BNSOL, and WBETH) occurred at 05:36 (UTC+8), later than the most volatile market window of 05:10–05:20 (UTC+8), and approximately 75% of the liquidations that day had already occurred before these three tokens de-pegged. The main driving factor for this event was the overall market-wide risk aversion and the market chain reaction triggered by liquidations, rather than individual platform anomalies. Throughout the entire process, Binance's core matching engine, risk verification, and liquidation systems remained stable and uninterrupted.
In the report, Binance acknowledged two technical glitches that day: First, during the concentrated market sell-off from 05:18 to 05:5 (UTC+8), Binance's asset transfer subsystem experienced a performance degradation of approximately 33 minutes, affecting some users' fund transfers between spot, wealth management, and futures accounts. The matching, risk control, and clearing systems continued to operate normally. The fact that some users saw their balances displayed as "0" was due to a front-end rollback display issue and not an asset loss. Second, during the period from 05:36 to 06:15 (UTC+8), with declining market order book depth, on-chain congestion, and a slowdown in cross-platform rebalancing, the USDe, WBETH, and BNSOL indices showed abnormal deviations. The report stated that when liquidity was thin and cross-platform fund flows slowed, price fluctuations within the platform accounted for an excessively high proportion in the index calculation.
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