RE: LeoThread 2025-10-13 05-56

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.

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

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.

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 on Hyperliquid hours earlier, minutes before a tariff headline.

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

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 was announced on Oct 6 but not fully rolled out until Oct 14, leaving an eight-day window.

2️⃣ The Exploit

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 prices, margin values collapsed and $500M–$1B of forced liquidations occurred. A tariff headline then amplified panic and liquidity stress.

3️⃣ The Profit Engine

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 closing, with timing and funding paths suggesting coordination.

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 for many alts.

5️⃣ Who’s at fault?

Binance’s pricing design and delayed oracle rollout are identified as the root cause; manipulators executed the moves and profited via external shorts; Ethena (USDe) reportedly remained 1:1 collateralized and redeemed normally elsewhere.

6️⃣ Aftermath

Binance acknowledged platform-related issues, proposed compensation for affected users, and implemented minimum price floors plus oracle integration. USDe stayed operational, and the incident is now cited as an example of how exchange-side pricing errors can trigger system-wide liquidations.

Bottom line: A sub-$100M manipulation on Binance plus a $1.1B leveraged short elsewhere set off a $19B market collapse — a failure of exchange collateral valuation under macro stress, not a stablecoin breakdown.

apparently it was trump calling for 100% tariifs on China