Binance's "10-11 Flash Crash" Review: denies system failure, compensates affected users with over $328 million BlockBeats News: On January 31st, according to official announcements, the cryptocurrency market experienced severe volatility and a "flash crash" on October 11th, 2025. Binance released a statement stating that the market turmoil was mainly triggered by multiple factors such as macroeconomic shocks, concentrated liquidation of highly leveraged positions, market maker risk control tightening liquidity, and Ethereum network congestion, rather than platform system failures. Binance stated that during extreme market conditions, the core matching engine, risk verification, and clearing system have maintained normal operation without any overall downtime or interruption. Market chain liquidation mainly occurs in the early stages of macro risk shocks, where high leverage positions are concentrated and deleveraged in an environment of rapidly shrinking liquidity. From a macro perspective, global financial markets generally fell on that day, with the US stock market evaporating approximately $1.5 trillion in value. The cryptocurrency market has been rising for several consecutive months, and the open interest contracts of derivatives are at historical highs, making it particularly sensitive to shocks. At the same time, extreme volatility triggered market maker algorithm risk control, resulting in a significant decrease in order book liquidity in a short period of time, amplifying price fluctuations. Binance further disclosed the investigation results of two technology incidents related to the platform: The performance of the asset transfer rotor system has declined (05:18-05:51, East Zone 8): Under high concurrency pressure, some users' fund transfers are slow, and a very small number of accounts have a temporary display problem of "zero balance", but it does not involve asset losses. Short term deviation of USDe, WBETH, and BNSOL indices (05:36-06:15, East Zone 8): In the context of insufficient liquidity and on chain congestion, the index weights and outlier filtering mechanisms are amplified, leading to short-term deviation. Binance stated that the aforementioned issues occurred after the most intense market volatility, and approximately 75% of the day's settlements occurred before the relevant tokens deviated, so they were not the main cause of the flash crash. In response to the incident, the platform has completed system optimization and compensated affected users who meet the conditions. As of October 22, 2025, Binance has completed full compensation, with a cumulative amount exceeding $328 million. In addition, Binance launched the "Same Boat Plan" on October 14th, setting up a $300 million user assistance fund and providing an additional $100 million in low interest loans to support the stable operation of the ecosystem and institutional clients.