Saturday, October 11, brought a harsh reality to the crypto market as it lost about $19 billion in value. Many eyes immediately turned to Binance, one of the largest exchanges, as the potential source.
A crypto analyst on X with over 150 thousand followers named Pepesso has broken down the events, mentioning a complex series of actions that led to the crash. According to Pepesso, the market movement wasn’t a simple reaction to global news.
Tariffs and external factors provided a convenient excuse, but the real forces were concentrated events on Binance itself. Whale inflows, stable-peg issues, and operational failures combined to create a perfect storm.
Hours before the crash, Wintermute transferred $700 million to Binance, including over $200 million in $BTC. These transfers thinned liquidity across other exchanges and removed critical support walls.
Technical updates to key trading pairs further destabilized the market, making it highly susceptible to a large-scale sell-off. Binance then used its Unified Account system to manipulate margin parameters, causing forced liquidations of assets like USDe, wBETH, and BNSOL.
USDe fell to $0.65 on Binance. On other exchanges, it stayed above $0.90. Technical glitches made things worse. Stop orders froze, and liquidations continued. Even low-leverage traders were affected.
How Internal Systems and Whales Fueled the Crash
Pepesso’s analysis also shows that the crash was meticulously prepared. Stablecoins flowed into Binance hot wallets, main market makers like Wintermute and Jump disappeared from order books, and Bitcoin OG opened over $1.1 billion in $BTC and $ETH shorts just hours before the dump.
What REALLY happened on Oct 10, 2025
— Pepesso (@0xPepesso) October 14, 2025
$19 BILLION got liquidated in just 1 hour
I analyzed all market data and internal Binance reports
Here’s how Binance manipulated the entire market for $19Bpic.twitter.com/u9DLQPpkXJ
The last infusion of funds came a minute before a key public statement, adding to the timing precision. Binance reacted quickly after the crash, paying out $283 million in compensation and delaying an oracle update, behavior that suggests a controlled response rather than a mere system error.
Coinbase played a supporting role in amplifying pressure on the market by moving BTC to hot wallets in preparation for sales. According to Pepesso, these events demonstrate how centralized exchanges can function more like tools for strategic market manipulation than neutral infrastructure.
Crypto Expert Warns of Potential Binance Shutdown
Another Crypto analyst curb.sol on X has issued a warning that adds a more urgent dimension to the unfolding story. He explained that Binance could face an extreme legal clampdown from the @FBI, including domain seizure, frozen funds, and withdrawal restrictions lasting several years.
BINANCE- how this will go down from someone that's seen a few CEX's taken down
— curb.sol (@CryptoCurb) October 15, 2025
1) binance domain will be seized by the @FBI
2) all funds will be frozen
3) you wont be able to withdraw until federal hearing (multiple years)
remove your funds from binance IMMEDIATELY.
this is… pic.twitter.com/b1cRDJb5WM
The potential liquidation event could surpass $100 billion, driven by faulty internal price oracles that caused $USDE, $BnSOL, and $wBETH to lose their internal peg. Many funds and individual whales reportedly lost multi-million-dollar positions due to Binance’s internal system failures.
Curb.sol warns anyone with funds on Binance to act fast. He suggests removing funds for at least three months. This gives time to see how things develop. Events this big, caused by a centralized problem, will not be ignored or quietly fixed.
What This Means for CZ and Binance Users
Binance is under intense scrutiny. Both the market and regulators are watching the exchange closely. Technical changes, liquidity shifts, and major liquidations have put Binance in the spotlight. Traders are questioning if their funds are safe and how the market will react.
This shows that even the largest exchanges can face operational problems and legal challenges. Investors are paying close attention. Binance’s next moves could shape trust and liquidity in crypto for months.