Binance Spends $283 Million Cleaning Up Weekend Market Chaos

Core Insights - Binance will compensate users a total of $283 million due to collateral asset depegging incidents during the market crash on October 10 [1][4][5] - The exchange attributes the market volatility to global macroeconomic stress rather than a failure of its platform [2][3] - Binance's systems, including futures and spot matching engines, remained operational throughout the event, with forced liquidation volume being relatively low [3] Compensation Details - The compensation was distributed in two batches within 24 hours, covering losses incurred by users whose positions were liquidated due to holding depegged assets as collateral [4][5] - Affected assets included USDe, BNSOL, and WBETH, which briefly depegged during the market shock [4] Technical Issues - Confusion arose from legacy limit orders dating back to 2019, which executed at extreme prices due to low liquidity, creating the appearance of flash crashes [6] - User interface display errors occurred after adjustments to tick size settings, leading to prices displaying as zero, although actual executions remained correct [7] - Binance has resolved these display issues and is committed to optimizing its systems to prevent future confusion [7][8]