Binance to compensate users after technical snag during $19B market crash

Core Insights - Binance, the world's largest crypto exchange, has committed to compensating users affected by technical issues during a significant $19 billion liquidation event on October 10, triggered by a market crash following Donald Trump's announcement of 100% tariffs on China [1][2]. Group 1: Market Impact - The liquidation event resulted in over $19.3 billion in leveraged positions being liquidated within 24 hours, marking one of the largest single-day wipeouts since the COVID-era crash [3]. - Nearly 1.67 million traders were liquidated, with long positions accounting for more than 85% of the losses, primarily in Bitcoin (BTC) and Ethereum (ETH) [3]. - BTC futures dropped to as low as $102,000, while Ether fell below $3,800 during the market turmoil [3]. Group 2: Exchange Performance - The sudden market volatility caused significant disruptions across multiple centralized (CEX) and decentralized (DEX) exchanges, leading to outages, lag, and failed orders [4]. - Binance experienced intermittent delays but has since restored service, along with other exchanges like Coinbase and Bitget, which also faced performance issues during the event [5]. Group 3: Company Response - Binance co-founder Yi He issued an apology for the disruptions and clarified that only losses due to platform issues, not general market volatility, would be eligible for compensation [2][3]. - The company emphasized its responsibility in the event of service failures, stating, "When we fall short, we take responsibility — there are no excuses" [3].