Inside October 10 Liquidation Spiral

• OKX CEO blamed Binance’s USDe campaign and collateral rules for the October 10 crash
• Critics disputed the timeline, saying Bitcoin fell before USDe moved on Binance
• API outages and broader market stress worsened price dislocations during the selloff

The October 10 crypto market crash remains disputed as exchange leaders offer differing explanations. OKX and Binance now present opposing views. The debate centers on risk controls, timing, and market structure during the selloff.

OKX CEO Blames Marketing and Risk Structure

OKX CEO Star said the October 10 event was not accidental. He stated it was driven by “irresponsible marketing” tied to USDe. His comments were made months after the crash.

According to Star, Binance launched a temporary campaign offering 12% APY on USDe. At the same time, USDe was treated like major stablecoins. It was accepted as collateral without strict limits.

OKX vs Binance over the October 10 crash🚨

– OKX’s CEO goes public

The CEO of OKX (Star) breaks the silence months later:

“10/10 was not an accident. It was caused by irresponsible marketing.”

Binance created a risk loop that broke the market.

– OKX’s version of events… pic.twitter.com/Edj0Dfo9LL

— StarPlatinum (@StarPlatinum_) January 31, 2026

Star said USDe differs from traditional stablecoins. He described it as a tokenized hedge fund product from Ethena. He said marketing blurred this distinction for users.

Industry Debate Grows Over Exchange Risk Controls and Market Stability

According to Bitcoin News, OKX founder Star Xu said Binance’s leverage structure drove the October 10 market collapse. He described the event as a man-made crisis tied to aggressive growth tactics.

OKX EXCHANGE CEO BLAMES BINANCE “LEVERAGE LOOP” FOR CATASTROPHIC 10/10 MARKET COLLAPSE

Star Xu, Founder of OKX, argues that the 10/10 crash was a man-made crisis fueled by Binance’s aggressive push for market dominance.

The trouble began when Binance officially integrated USDe,… pic.twitter.com/oz8K2aI38R

— Bitcoin News (@BitcoinNewsCom) January 31, 2026

Star said Binance integrated USDe into its core systems and promoted it with a 12% APY campaign. He said Binance treated USDe like cash collateral, even though it is a synthetic dollar product.

He added that users looped USDe into leveraged trades, which inflated risk. When liquidations began, pricing failures caused a sharp depeg on Binance.

Critics Question Timing and Motives

Dragonfly founder Haseeb Qureshi challenged OKX’s account. He said the timeline does not support the claim. Bitcoin prices bottomed before USDe moved on Binance.

Qureshi said cause and effect did not align. He stated, “This story is ridiculous.” He also questioned why the issue surfaced months later.

Qureshi noted that market data had been public for months. Order books were widely reviewed after the crash. He suggested the comments may reflect a broader dispute.

Broader Market Stress and Open Questions

Other factors affected markets that day. Reports of tariff threats from former President Donald Trump added pressure. Crypto markets were open while others were closed.

At the same time, Binance APIs experienced outages. Market makers could not rebalance positions. Price gaps widened across trading pairs.

No single explanation has resolved the October 10 crash. Market participants agree losses were severe. The event continues to raise questions about risk management.