Market manipulation? Or is it actually just at the center of the storm?

In the cryptocurrency market flash crash event on October 10, 2025 (referred to as 1010), the total market liquidation scale reached 20 billion dollars.

Bitcoin suddenly dropped by about 10%, and some altcoins even experienced a nearly 99% liquidity collapse, forcing a large number of users to be liquidated in a very short time.

It was only recently that this incident was brought back into discussion, and public opinion almost unanimously pointed towards Binance.

Xu Mingxing publicly criticized Binance's high-interest activities as causing real and lasting damage to the market.

Believes that USDe's high-yield activities amplified the leverage structure, leading to systematic deleveraging.

Cathie Wood also pointed to exchange system issues, believing that software failures triggered forced liquidations.

Even the Solana community spread FUD, calling for funds to withdraw.

Thus, Binance = the culprit.

But I believe this conclusion: it is indeed correct, but not in this way.

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Binance is more like 'the chosen one'.

If one must bear full responsibility for the entire market collapse just because of 'high interest activities', then almost no one in the entire industry is innocent.

In September 2025, HTX under Sun Ge launched a 20% APY high-interest deposit activity, attracting users to deposit tokens issued by the Trump family.$WLFI tokens.

As a result, the next day the tokens were concentrated and transferred, quickly dumped, and eventually even evolved into a situation where Eric Trump and Sun Ge fell out, freezing about 100 million dollars in assets.

Is this a self-directed performance? The outside world cannot know;

But what can be confirmed is this set: high interest + concentrated liquidity + a script where prices are targeted

It was written long ago.

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The real explosive point of 1010 is not the interest rate, but the 'circular leverage teaching'.

Time has come to October 2025.

Binance launched $USDE 12% APY high-interest activities, which at first glance is not exaggerated.

The real problem is: the 'circular borrowing teaching' that spread rapidly in the square.

Deposit → Borrow → Re-deposit → Re-borrow, leverage has been magnified to over 60%.

In this kind of high-leverage structure, as long as there are price fluctuations, liquidation is a 'mathematical inevitability'.

If 1010 had not happened that day, it would have happened next time.

Because exchanges cannot forever avoid activities.

When pointing a finger at others, don't forget the other three are pointing at yourself.

Xu Mingxing, who criticized a few days ago,

Clearly forgot that OKX launched a high-interest activity with an annualized rate of up to 10591% in December 2025.

The market immediately saw a borrowing frenzy, even Binance's ADA liquidity was borrowed to the bottom.

The difference is only that this time no one targeted the market.

The consequence of 1010 is actually a 'one-time clearing'

Binance is the largest exchange in the entire market.

When deleveraging occurs, the largest platform will inevitably bear the most severe chain reaction. 1010 almost cleared all excessive leveraged funds at that time.

After the incident, the market did not immediately rebound, but continued to weaken.

The reason is simple: institutions sell coins to survive.

Until today, the crypto market has not fully recovered, but this is not a problem of a single exchange.

is that the market structure inevitably: the exchange dealer releases coins → attracts more funds to harvest → attracts vultures to harvest.

The lesson that should be remembered

1010 is not 'Binance's fault', but the collective cost of the entire crypto industry for insufficient activity risk control.

High interest can exist, but in a market where 'being targeted' has become the norm,

Activity design must assume that the worst-case scenario will definitely happen.

Limit circular leverage and strengthen risk control buffers.

Leave a way out at the system level.

Binance is just the largest structure at the center of the storm.

The greater the ability, the greater the responsibility.

This lesson has made the market structure more stable and the clearing more predictable.

Bungee jumping will bounce back instead of falling to death.

Then the future 'playability' of the crypto market will be greater, looking forward to welcoming a more prosperous crypto frenzy.