A viral thread on X (1.1 million views) has put forward a forensic narrative for Friday’s crypto wipeout, arguing that what looked like a chaotic macro-driven capitulation was, in fact, a targeted exploitation of how Binance priced collateral inside its Unified Account. The author @ElonTrades frames the episode not as a stablecoin failure but as an exchange-side design flaw that was hit precisely when the broader market was already on edge.
Why Did The Crypto Market Really Crash?
According to @ElonTrades, the core of the setup was Binance’s decision to value certain collateral — notably USDe, wBETH and BNSOL — using its own spot-order-book data rather than external or redemption-based oracles. The thread claims Binance had already announced a change “on Oct 6 … to move to oracle-based pricing,” but with rollout until Oct 14, leaving what the author describes as an eight-day vulnerability window.
In that window, the alleged exploiters could move the venue’s internal marks by shifting prints in local order books, instantly shrinking users’ borrowing power and setting off margin calls.
The Oct 11 Crypto Crash — What Really Happened
TL;DR:
Roughly $60–90M of $USDe was dumped on Binance, along with $wBETH and $BNSOL, exploiting a pricing flaw that valued collateral using Binance’s own order-book data instead of external oracles.
That localized depeg triggered…
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Author: Jake Simmons
