Binance attributes October 10 flash crash to macro shock, heavy leverage, and evaporating liquidity, not trading system breakdown. Market already under pressure from trade-war headlines. Bitcoin and ether’s rally left traders heavily positioned. Open interest in bitcoin futures and options exceeded $100 billion, leading to forced deleveraging. Selloff triggered market makers to reduce exposure, pulling liquidity. U.S. equity markets lost $1.5 trillion. Blockchain congestion worsened situation. Binance experienced platform-specific incidents but not cause of broader market move. Compensated affected users and implemented methodology changes. $328 million compensated to users, support programs launched.

Read more at Yahoo Finance: Binance pins crypto’s worst-ever liquidation day on macro risks, not exchange failure