X @Arthur Hayes

Incident Overview - Approximately $60-90 million of $USDe was dumped on Binance, alongside $wBETH and $BNSOL, exploiting a pricing flaw [1][3] - This localized depeg triggered $500 million - $1 billion in forced liquidations, cascading into over $19 billion globally [2] - Attackers profited about $192 million via $1.1 billion in BTC/ETH shorts opened on Hyperliquid [2][4] Root Cause Analysis - Binance's Unified Account valued collateral using its own spot market instead of external oracles, creating a major vulnerability [3] - Binance announced a fix to move to oracle-based pricing on Oct 6, but the rollout wasn't until Oct 14, leaving an 8-day window for exploitation [3] - A coordinated manipulation of Binance's order books, amplified by a macro shock (Trump's tariffs) and systemic leverage, caused the crash [2] Responsibility and Aftermath - Binance's design flaw and delay in oracle rollout were the root cause of the incident [5] - Binance admitted "platform-related issues," promised compensation, and rolled out minimum price floors + oracle integration [6] - Ethena (USDe) was not at fault, as the protocol remained 1:1 collateralized, redemptions were normal, and the peg held everywhere else [6]