TechFlow news: On January 31, Binance released a detailed investigation report on the cryptocurrency market flash crash that occurred on October 11, with the key findings as follows:
- The primary drivers of the market turbulence on October 11, 2025, included macroeconomic shocks, market makers’ risk-control mechanisms, and Ethereum network congestion.
- During the market volatility, Binance’s core systems remained fully operational without any platform-wide outages; all core matching, risk verification, and liquidation functions continued to operate stably and without interruption.
- Binance remains committed to transparency and user protection, and has proactively implemented multiple measures to support users affected during periods of extreme market volatility.
Detailed explanations of two specific incidents:
Incident One: Reduced performance of the asset transfer subsystem (05:18–05:51 CST)
During the peak sell-off period, our internal asset transfer subsystem experienced approximately 33 minutes of degraded performance, affecting fund transfers for some users among spot, wealth management, and futures accounts. Core matching, risk verification, and liquidation functions remained fully operational throughout this period. The impact was confined solely to the fund transfer pathway and its related dependent services. For a very small number of users, backend API calls failed, causing their interface balances to briefly display “0”; this was purely a display issue and did not reflect any actual asset loss.
Incident Two: Deviation of USDe, WBETH, and BNSOL indices (05:36–06:15 CST)
Against a backdrop of broadly diminished order book depth and on-chain congestion hindering cross-platform arbitrage, the USDe index first exhibited abnormal deviation, followed by similar deviations in WBETH and BNSOL. Localized liquidity shortages, accelerated liquidations, and slowed cross-market capital flows amplified short-term price fluctuations on our platform within the index calculation.
