Binance releases detailed investigation report on the October 11 cryptocurrency market flash crash: isolated issues on the Binance platform were not the cause of this market crash

TechFlow DeepTide News, on January 31, Binance released a detailed investigation report early in the morning regarding the October 11 cryptocurrency market flash crashKey Pointsas follows:

The main drivers of market volatility on October 11, 2025, included macroeconomic shocks, risk control mechanisms by market makers, and congestion on the Ethereum network.

During the market turbulence, Binance's core systems remained fully operational without any platform-wide outages. All core matching, risk verification, and clearing functions continued to operate stably without interruption.

Binance has consistently been committed to maintaining transparency and protecting user interests, proactively implementing multiple measures to support users affected by extreme market fluctuations.

Binance stated that it is important to clarify that individual issues on the Binance platform were not the cause of this market flash crash.The widely discussed depegging of three tokens (USDe, BNSOL, WBETH) occurred at 05:36 (UTC+8), later than the most intense period of market volatility (05:10–05:20 UTC+8). Approximately 75% of liquidations had already taken place before these three tokens depegged. This sequence indicates that the majority of deleveraging occurred during the initial macro shock at 04:50 (UTC+8), when forced liquidations accelerated price declines amid rapidly thinning order book liquidity.

This further confirms that the primary drivers of this event were risk-averse sentiment across the broader market and a chain reaction triggered by liquidations, rather than isolated platform anomalies. Throughout the process, Binance's core matching engine, risk verification, and clearing systems operated stably without interruption.

Below are the investigation findings for two specific incidents:

Incident One: Performance degradation of the asset transfer subsystem (05:18–05:51 UTC+8)

During the peak selling period, our internal asset transfer subsystem experienced approximately 33 minutes of slowed performance, affecting some users' fund transfers between spot accounts, savings accounts, and futures accounts. Core matching, risk verification, and clearing functions remained fully operational throughout this period, with the impact limited to fund transfer pathways and their related dependent services. A very small number of users briefly saw their interface balances displayed as '0' due to backend call failures, which was a display issue and did not reflect actual asset losses.

Incident Two: Index deviation of USDe, WBETH, and BNSOL (05:36–06:15 UTC+8)

Against the backdrop of generally reduced depth in the market order book and chain congestion hindering cross-platform arbitrage, the USDe index first showed abnormal deviations, followed by similar situations for WBETH and BNSOL. Insufficient localized liquidity, accelerated liquidations, and slower cross-market capital flows have amplified short-term price volatility within the platform's index calculations.

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