TechFlow, October 11 — Futures trader CoinMamba posted on social media stating that during yesterday's market crash, Binance's forced liquidation mechanism exhibited improper operations. The trader was running a pairs trading strategy on Binance, holding both a long and a short position. When prices began to plummet and margin became insufficient, Binance did not partially close both positions; instead, it fully closed the short position while leaving the long position entirely open, ultimately resulting in the forced liquidation of the long position.
CoinMamba emphasized this was not due to the auto-deleveraging (ADL) mechanism, and noted that similar positions running on decentralized exchanges such as Lighter and Extended weathered the crash perfectly.
