PANews reported on October 13 that Binance stated in an official announcement that after review, it can be confirmed that: from 04:50 to 06:00 on October 11, Binance's core contracts and spot matching engines and API transactions all maintained stable operation; after 05:18 on October 11, some functional modules of the platform experienced a brief freeze, and some wealth management products were decoupled due to drastic market fluctuations. In response, Binance initiated and completed relevant compensation arrangements for users affected by the decoupling incident.
Regarding compensation arrangements for wealth management product depegging, it's important to clarify that the claim that the depegging triggered a market crash is untrue. Following an extreme market downturn, the market reached its lowest point between 05:20 and 05:21 on October 11th. Binance's wealth management products (USDE, BNSOL, and WBETH) experienced an extreme depegging after 05:36 on October 11th. Binance will fully cover losses incurred from the liquidation of contract, leveraged, and loan positions resulting from the depegging of some wealth management products. Compensation has been distributed in two tranches, totaling approximately $283 million. Regarding compensation arrangements for delayed internal transfers and wealth management redemptions, during periods of significant market volatility, internal transfers and redemptions on the exchange experienced a brief delay, preventing timely replenishment of positions. Users who incurred actual losses as a result of this delay will be compensated based on the results of the review. Regarding ongoing review and transparent disclosure, the overall compensation total is still being calculated and processed.
Some spot trading pairs experienced extreme prices for two reasons: First, unilateral liquidity triggered historical limit orders. The platform has years of historical limit orders. During extreme market conditions, a large number of sell orders caused unilateral liquidity, triggering these historical orders and causing token prices to plummet to extremely low levels, creating a "price spike." Second, price precision adjustments differed. Some trading pairs reduced the minimum price increment digit, resulting in abnormal decimal display of transaction prices, creating the illusion of "zero prices." Binance will optimize the display and correct the abnormal prices.
