The Binance Playbook: Why Crypto Twitter Hates the Biggest Exchange?

Core Viewpoint - Binance faced significant backlash following a trading incident that led to system disruptions and allegations of market manipulation, with users claiming the exchange benefited from the trading freeze during a period of high volatility [1][3][21]. Group 1: Incident Overview - On October 10, a sharp market crash resulted in over $19 billion in leveraged positions being liquidated, marking the largest liquidation event tracked by CoinGlass [4]. - Binance acknowledged disruptions due to "heavy market activity," stating that user funds remained secure, but some assets temporarily lost their pegs [2][6]. - Users reported issues such as frozen accounts and failed stop-loss orders, leading to speculation about coordinated liquidations rather than a standard market sell-off [3][4]. Group 2: Binance's Response - Binance compensated affected users within 24 hours, distributing approximately $283 million, and launched a $400 million support initiative shortly after [7]. - The exchange emphasized that the forced liquidation volume was relatively low compared to total trading volume, attributing volatility to overall market conditions [6]. Group 3: Community Reactions and Allegations - Allegations against Binance included claims of manipulating liquidation timestamps and benefiting from the trading freeze, with some users labeling the exchange and its co-founder as "scammers" [21][24]. - Criticism extended to Binance's operational practices, with industry figures suggesting that the October crash caused lasting damage to the crypto market [12][13]. Group 4: Market Impact and Future Outlook - The aftermath of the October crash saw Bitcoin and Ethereum lose all gains from 2025, with experts linking the muted market performance to the events of October 10 [11]. - Binance's plans to convert its $1 billion reserve from stablecoins into Bitcoin were announced as a move to project strength amid growing scrutiny [27]. Group 5: Operational Highlights - In 2025, Binance reported assisting in recovering $48 million from incorrect user deposits and preventing an estimated $6.69 billion in potential scam-related losses [30]. - The exchange's Proof of Reserves totaled $162.8 billion across 45 crypto assets, indicating a strong asset base despite the recent controversies [30].