The recent crash on Oct. 10 led to the largest liquidation event in crypto history, with over $19 B liquidated, causing a $65 B decline in open interest. The vulnerability of pricing oracles on Binance played a role, potentially exploited in a coordinated attack. USDE, bnSOL, and wBETH were affected, with USDE contributing the most to liquidations.

Rena Labs’ anomaly detection engine identified a significant market dislocation in stablecoin trading, despite no concerns about USDE collateral. Liquidity for USDE dropped by 74% in just 15 minutes on Binance, with market depth disappearing. Bid-ask spreads widened to 22%, and trading volume surged during the crisis.

Abnormal activity was detected by Rena’s engine before the USDE liquidity crisis, with 28 anomalies reported at a rate four times higher than the previous hour. Large orders before the crisis point to potential market manipulation. The event highlights the fragility of the crypto market and the risks of cascading liquidations wiping out seemingly safe trades.

Read more at Cointelegraph: Exclusively obtained orderbook data reveals details about USDE crash