[Dragonfly Managing Partner: '1011 Crash' Was Not Caused by Binance or Ethena, but by Systemic Market Liquidity and Other Factors Combined] According to a report by Jinse Finance, Dragonfly Managing Partner Haseeb posted on the X platform, stating that recent opinions suggest the root cause of the massive liquidation in the crypto market on October 11 (1011) was Binance's launch of Ethena yield activities, which led to excessive leverage in USDe and ultimately caused the crash. However, this claim may be problematic: 1. Causal sequence mismatch: Bitcoin had already bottomed out 30 minutes before USDe's price fluctuations, indicating that USDe was not the trigger of the liquidation chain. 2. Limited scope of the event: USDe price deviations only occurred on Binance, but the liquidation wave spread across major exchanges, showing that USDe did not transmit across markets and cannot explain the global liquidation. In fact, the more likely cause of the 1011 crash was the combination of systemic factors, including: 1. Market panic triggered by news of Trump tariffs that evening, leading to a sudden surge in trading volume; 2. A temporary outage of Binance's API, which prevented market makers from balancing positions across exchanges, triggering large-scale liquidations; 3. The activation of the Auto-Deleveraging (ADL) mechanism, which disrupted risk hedging and amplified losses; 4. The absence of self-stabilizing mechanisms in traditional finance (such as circuit breakers) in the crypto market, making it difficult for retail investors to intervene in time. Therefore, the '1011 Crash' was the result of a combination of path-dependent events and structural flaws in the market, rather than the responsibility of a single platform or product. While the market can recover in the long term, retail investors and market makers have suffered significant short-term losses.