TechFlow News: On January 31, Haseeb Qureshi, Managing Partner at Dragonfly, offered his analysis of the October 10 cryptocurrency market crash. He deemed it unreasonable for OKX CEO Star to attribute the crash to Binance’s Ethena yield program causing excessive leverage in USDe.
Qureshi pointed out that Bitcoin’s price had already bottomed out 30 minutes before USDe’s price was affected, and that USDe’s price deviation occurred exclusively on Binance’s platform—yet the liquidation storm swept across all exchanges. According to Qureshi, the true causes of the October 10 crash were a confluence of factors: market panic triggered by Trump’s tariff threats; an outage in Binance’s API leading to price misalignment and widespread liquidations; market makers’ inability to rebalance inventory across exchanges; and the lack of inherent stability in cryptocurrency liquidation mechanisms.
