Binance Reviews User Losses After USDe, BNSOL, and WBETH Depeg
- Binance confirms depeg of USDe, BNSOL, and WBETH, causing severe global market turbulence.
- Exchange begins user review and explores compensation as part of its ongoing investigation.
- USDe collapses vs USDT/USDC; using synthetic dollars as collateral is unstable.
Binance faced a major disruption on October 11, 2025, as three tokens on its platform sharply deviated from their intended values. USDe, BNSOL, and WBETH suffered a steep depeg, sending shockwaves through global crypto markets. The forced closure of leveraged positions in the exchange resulted from the sudden depeg.
Binance verified the incident and indicated that it is investigating the user accounts that have been impacted. The firm also declared that it is evaluating the liquidations and the potential compensation programs for affected traders.
Binance Promises Accountability, Compensation, and Stronger Risk Controls
Binance assured users that its internal teams are conducting a detailed review. It added that improvements in risk management systems are underway to reduce the chances of similar occurrences. The exchange expressed appreciation for the user’s patience during its investigation process.
Yi He, Co-Founder and Chief Customer Service Officer, addressed the issue directly. She said that over the past 16 hours, extreme market fluctuations and a large influx of users caused transaction issues for some traders. She issued a formal apology to affected users for the inconvenience.
Yi He urged users who experienced losses caused by Binance’s systems to contact customer service and register their cases. Each account would be reviewed individually. Binance would analyze all relevant activity and offer compensation where justified. However, she clarified that losses from normal market movements or unrealized profits are not eligible for compensation.
She stressed that Binance remains committed to accountability and transparency. Yi He said Binance has always faced problems directly and takes responsibility when things go wrong.
The market crash coincided with a major political announcement. U.S. President Donald Trump declared a 100% tariff on Chinese imports, effective November 1, 2025, or sooner. He accused China of using rare-earth export limits as economic weapons, unsettling investors worldwide.
Binance Faces Scrutiny Over Data Gaps, Liquidations, and Stablecoin Risks
CoinGlass data showed 24-hour liquidations above $19 billion, mostly from long positions. The platform noted the real figure could be much higher since Binance reports only one liquidation per second. Analyst Marty Party backed the claim and stated Binance liquidations are about 10x to 20x higher than reported.
Binance has a WebSocket API with a bandwidth of one order per second during liquidation. This limit causes immense gaps in data during periods of extreme price swings in the market. The overall liquidation volumes are usually incomprehensive since many parallel liquidation orders are frequently not captured.
Related: Crypto Crash Triggers $19B Liquidation in Just 24 Hours, Here’s Why
The issue of underreporting is not new in the industry. In February 2025, Bybit CEO Ben Zhou criticized Binance, OKX, and Bybit for similar API throttles. He claimed Bybit’s internal records showed $2.1 billion in liquidations while CoinGlass recorded only $333 million.
Bastion CEO Nassim Eddekiuak noted that USDe’s price collapsed to $0.65 against USDT and $0.62 against USDC. He said using synthetic dollars as collateral is fundamentally unstable due to the lack of synchronized settlement between spot and short positions.
He cautioned that using such assets in large transactions exposes investors to severe volatility. He added that a payment asset fluctuating between 2% and 38% could not be considered reliable collateral.
OKX co-founder Star Xu argued that USDe should not be labeled a stablecoin. He described it as a tokenized hedge fund, saying that the idea of a fixed peg does not apply. Xu added that investors should understand its structure before treating it as a stable-value asset.
The Binance depeg incident highlighted the flaws in the structure of assets and market openness. The traders are waiting to see how Binance will restore confidence in the market that has been shaken by volatility and data problems.
