The USDe synthetic dollar depegged on Binance due to an internal oracle issue, not the Ethena protocol or token itself. $2 billion in USDe was redeemed during the flash crash with minimal deviations. The crash led to $20 billion in liquidations, creating a financial cascade. Some speculate the depeg was a coordinated attack exploiting a vulnerability on Binance.

ElonTrades speculated the USDe depeg on Binance was a coordinated attack exploiting Binance’s “Unified Account” feature. Attackers dumped $90 million of USDe, causing the price to drop to $0.65 and triggering $1 billion in liquidations. They profited $192 million from short positions on Bitcoin and Ether.

The attackers’ actions on Binance spread contagion through crypto markets, leading to a $20 billion liquidation event. CEO of Crypto.com called for an investigation into exchanges that experienced large losses. The incident highlights vulnerabilities in the crypto market that can be exploited for profit.

Read more at CoinTelegraph: Ethena Founder Says USDe Depeg Due to Binance Oracle Issue