4️⃣ The Contagion Binance liquidations dumped BTC/ETH/altcoins into thin books, cross-market bots and hedging forced unwinds on other venues, producing $19B+ in global liquidations and large intraday losses

New wallets on Hyperliquid opened $1.1B in BTC/ETH shorts funded by about $110M USDC from Arbitrum-linked sources. As the Binance cascade unfolded and BTC/ETH fell, those shorts netted roughly $192M before

3️⃣ The Profit Engine

During that window, actors manipulated Binance order books, dumping ~$60–90M of USDe and pushing its Binance price to about $0.65 while it remained near $1 elsewhere. Because collateral was marked to internal

2️⃣ The Exploit

Binance’s Unified Account allowed assets like USDe, wBETH, and BNSOL as collateral and marked them to the exchange’s spot order book rather than oracle or redemption prices. A fix to move to oracle pricing

This looks like a Binance design flaw timed with macro panic, not a USDe protocol failure. 1️⃣ The Setup

That Binance-only depeg prompted roughly $500M–$1B in forced liquidations on the exchange, cascaded into $19B+ globally, and the attackers reportedly earned about $192M via $1.1B in BTC/ETH shorts opened

Around $60–90M of USDe was sold on Binance, alongside wBETH and BNSOL, exploiting a pricing approach that used Binance’s own order-book prices for collateral instead of external oracles.

The Oct 11 Crypto Crash — What Really Happened TL;DR:

Charting shows USDe on Binance didn’t depeg until about 20 minutes after the crash — after the Hyperliquid "insider" shorts had closed — so the attack-and-profit narratives don’t add up.

Widespread claims that a $60M USDe sell on Binance triggered the entire liquidation are misleading.

ADL needs to exist, but basis traders being ADL'd despite being delta-zero is a real problem An exchange's job is to de-risk during volatility, and since ADL sorts by lev*pnl, basis traders end up erroneously

it's unfortunate — many were affected on the way down, and some were ADL'd right at the pico bottom

ADL queue is largely driven by how much leverage is in use many traders were ADL'd, but those hit first had significant leverage on supposedly delta-neutral positions

Hindsight aside ADL happens in an order determined by how risky each position is (see contract specs) This is hindsight because many rush to add collateral in the final minutes, which can shift priority

With many accounts on cross margin, liquidations happen in sync so everything gets nuked together

Maybe it hit alts especially hard because there haven't been this many alts with perps before Whales don't route bids algorithmically across a basket of 5–10 coins; they click a ticker and place a bid

Indeed, two certified psychologists were funded to provide free virtual reality therapy through the server in 2021. The use of body-tracked avatars allowed for social cues, while anonymity helped patients

Remember when support for mental health was provided in a Discord community for cryptocurrency enthusiasts, resulting in hundreds of appointments being scheduled between 2021 and 2023?