Web3 CEOs Clash Over Who Caused Crypto’s 10/10 Black Friday Crash

Core Insights - The October 10, 2025 crypto market crash resulted in an estimated $19–28 billion in forced deleveraging, sparking debates among Web3 executives regarding the causes of the collapse [1][2]. Group 1: Causes of the Crash - Competing narratives have emerged about the reasons behind the crash, with discussions focusing on systemic leverage, yield-fueled risk-taking, and exchange-specific dynamics [2][4]. - Cathie Wood, CEO of ARK Invest, attributed the crash to a software-related issue at Binance, linking it to a $28 billion deleveraging event that led to significant selling pressure [3][4]. - Wintermute founder Evgeny Gaevoy countered this narrative, describing the event as a macro-driven flash crash exacerbated by record leverage and thin liquidity, arguing against blaming a single exchange [4][5]. - OKX CEO Star Xu criticized the prevailing explanations, asserting that the crash was caused by irresponsible yield marketing and leverage incentives rather than market structure [6]. Group 2: Market Reactions - The crash led to a significant liquidation of leveraged positions, with approximately $19 billion being liquidated within hours, causing a market-cap contraction of $2.2 billion on Binance [1]. - The debate among industry leaders has intensified, with various stakeholders including exchange CEOs, market makers, and institutional investors engaging in discussions about the underlying causes of the crash [2][5].