OKX and Binance Dey Fight Over Oct 10 Liquidation Spiral — OKX Blame USDe Leverage Loop
OKX and Binance dey argue why crypto market crash happen on October 10, 2025. OKX CEO Star Xu talk say marketing push for Ethena’s USDe — wey include temporary ~12% APY and promotion for Binance — make traders dey treat USDe like cash, and this create repeated swap-borrow collateral loop wey jack up leverage and cause cascading liquidations (~$19.16B total liquidations, ~$16B longs). OKX say the USDe loop widen price dislocations and Bitcoin fall worsen because of aggressive collateral reuse. Critics like Dragonfly partner Haseeb Qureshi and Binance no gree with OKX timeline and blame. Dem point out say Bitcoin don start to fall before USDe diverge on Binance, ask why the allegation come months later, and say the flash crash na because heavy leverage, liquidity wey vanish, macro headlines and Binance API outages. Key takeaways for traders: exchange collateral policies and marketing fit create concentrated demand and leverage loops; synthetic stablecoins (USDe) wey dem use as unrestricted collateral dey pose systemic risk; exchange API reliability and cross-market liquidity gaps fit make shocks worse. Traders suppose reassess collateral risk, monitor exchange risk controls and liquidity, and reduce concentrated leverage during promotions or untested product launches.
Bearish
Di dispute wey dem report plus di facts don raise how people dey see systemic risk for using synthetic stablecoins (USDe) as unrestricted collateral and e show exchange-level weaknesses (API outages, collateral policies). Short-term: higher uncertainty and the chance say similar quick deleveraging fit make prices dey more volatile and biased down, as traders dey pull liquidity and reduce leverage around di affected products and exchanges. Di reported scale of past liquidations (~$19.16B) and di concentration of long losses (~$16B) dey reinforce risk-off behaviour: margin calls and tighter funding likely go pressure prices. Long-term: if exchanges tighten collateral policies and improve risk controls, some downward pressure fit ease, but damage to trust and stricter rules fit reduce leverage-driven demand and liquidity, lowering volatility but also dampening bullish leverage fuel. Overall, net impact on di mentioned assets (notably BTC and stablecoin-linked instruments) negative inna di near term and neutral-to-negative long term until policy and market structure adjustments restore confidence.