Binance said it will compensate a group of users affected by Friday’s extreme market swings that caused three major tokens to lose their peg and trigger forced liquidations.
The exchange confirmed on Saturday, Oct. 11, that users who held Ethena’s USDe, BNSOL, or WBETH as collateral on its platform between 21:36 and 22:16 UTC on Oct. 10 will receive compensation.
During that 40-minute window, prices for those assets briefly diverged from their benchmarks, prompting automatic liquidations.
What Triggered the $19 Billion Liquidation Across Global Exchanges?
Binance said the incident was linked to unusual volatility and internal platform issues. Impacted users across Futures, Margin, and Loan products will have their accounts reviewed automatically, with payouts processed within 72 hours.
The compensation will match the gap between a trader’s liquidation price and the market price at 00:00 UTC on Oct. 11.
Binance will also refund any liquidation fees charged during the event. Users whose cases fall outside this scope can contact customer support for review, though the company clarified that normal trading losses and unrealized gains will not qualify.
The move follows what analysts described as one of crypto’s largest liquidation events on record.
As per Bloomberg’s report, roughly $19 billion in positions were wiped out across global exchanges within 24 hours, affecting about 1.6 million traders after news of fresh US tariffs rattled markets late Friday.
On Binance, USDe momentarily plummeted to a low of about $0.65, then upsurged to indicating that liquidity is extremely weak when volatility is extremely elevated.
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What Steps Is Binance Taking to Prevent Another Liquidation Event?
The exchange indicated that it is undertaking a comprehensive review to avoid similar reoccurrences since users still desired more effective protection following one of the most turbulent trade periods in 2025.
As a means of preventing such incidents, Binance is modifying its price index calculations and risk parameters.
The exchange shall now have redemption prices based on the index weights of BNSOL, WBETH, and USDE, establish a price floor for USDE, and review the risk settings more frequently.
In 2023, Binance CEO Richard Teng replaced the co-founder Changpeng “CZ” Zhao and apologized to users of the platform who suffered during the market storm.
“I’m truly sorry to everyone who was impacted,” Teng said in a post on X. “We don’t make excuses, we listen, learn, and are committed to doing better.”
The last 24 hours have been turbulent for the crypto market, and I know many of you faced challenges on our platform. I’m truly sorry to everyone who was impacted.
We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better. If you’re…
— Richard Teng (@_RichardTeng) October 11, 2025
Soon after his message, Binance released a detailed follow-up explaining its compensation plan for traders caught in the liquidation wave.
In response to the broader fallout, Crypto.com CEO Kris Marszalek called on regulators to examine exchanges that recorded unusually high liquidation volumes.
Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices. Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?… pic.twitter.com/UCD6iKuKFQ
— Kris | Crypto.com (@kris) October 11, 2025
He made the statement in a post on X, echoing industry concerns over the chain reaction caused by automated liquidations across multiple trading platforms.
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