Key Takeaways:
- Binance confirmed that tokens appearing to crash to $0 were due to a display bug from decimal place changes, not actual price drops.
- The glitch occurred during a $20 billion market selloff, triggering $1 billion in liquidations on Binance alone.
- Speculation arose over a possible exploit tied to Binance’s internal pricing system ahead of its shift to external oracles.
Binance has clarified that several tokens did not actually crash to $0 during Friday’s market sell-off, but instead appeared that way due to a display error.
The issue affected altcoins such as IoTeX (IOTX), Cosmos (ATOM), and Enjin (ENJ), which briefly showed near-zero prices on Binance while trading normally on other exchanges.
🚨 Due to heavy market activity, our systems are under high load. Some users may experience intermittent delays or display issues.
— Binance (@binance) October 10, 2025
We’re actively monitoring the situation and working to resolve it. Funds are SAFU.
Thank you for your patience!
The platform explained that the glitch was linked to recent adjustments in decimal precision for certain trading pairs, causing the user interface to display zero values.
The incident coincided with one of the largest liquidation events in crypto history, wiping out roughly $20 billion in leveraged positions.
Manipulation of USDe, wBETH and BNSOL began around 21:14 UTC.
— ElonTrades (@ElonTrades) October 12, 2025
You can zoom in on the minute chart of $SUI, $ATOM or any other altcoin and see the correlation. For people saying the depeg/manipulation happened after alts bottomed. Nonsense. You have to zoom in, this stuff… pic.twitter.com/1fBPfEoT5l
Some traders, including ElonTrades, speculated that the event may have been linked to an exploit targeting Binance’s “Unified Account” feature, which relies on internal pricing rather than external oracles.
This alleged loophole may have allowed attackers to manipulate prices before Binance’s planned switch to oracle-based pricing on October 14.
Binance has pledged $283 million in compensation for users affected by the USDe depegging, while Crypto.com CEO Kris Marszalek has called for regulatory scrutiny into exchanges most impacted by the crash.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: