I have recently spent a lot of time researching the causes of the 10/11 grand calculation. For traders, controlling tail risk is one of the most important issues. Only by knowing where risks come from can we know how to avoid them. Currently, it can be confirmed that some currencies experienced a sudden decline in liquidity between 5:10 and 5:20, and it was not until after 5:40 that liquidity gradually recovered For those familiar with the market microstructure, such synchronous drawdown is highly unusual, as market makers have a responsibility to maintain the depth of market positions. Even in the face of risk events, they can only adjust parameters, reduce liquidity provision, or expand spreads If it's some small coins that only have active market makers, it's fine, and some large coins have no liquidity at all, which is simply unbelievable And Trump's temporary imposition of Chinese tariffs is a huge negative? 312, 519, LUNA collapse, FTX bankruptcy, and the even more chaotic tariff war at the end of February this year, each one is more extreme than this event, even during those times, the liquidity of counterfeit goods was not as bad as this Next is the extreme low price of Binance Binance is the largest offshore exchange, and generally speaking, Binance has the best depth and the most complete lineup of market makers, so extreme prices should not occur But this time it's completely different Out of over 400 trading pairs on Binance, nearly 60% had the lowest quotes among peers in this event About 25% of the trading pairs have quotes, with a gap of over 10% compared to the second lowest exchange Among them, there are also some coins that deviate significantly in price: Deviation of 50-75%: ACT, AUDIO, COOKIE, DOT, EPIC, FIL, FIS, GHST, HEMI Deviation of 75-100%: HOOK, ICX, MITO, PIXEL, POLYX, QI, REZ, TREE, ZROAXL, BERA, CYBER, DEGO, HIVE, HOME, INIT, JUP, RPL Deviation of more than 100%: ANIME, API3, APT, ATOM, BANANAS31, CVC, DEXE, DOGS, ENJ, ENS, ETHFI, FLM, FXS, GMT, IOST, IOTX, KAVA, KERNEL, ME, MUBARAK, ORCA, PUMP, RVN, SAND, SOLV, SUSHI, SYRUP, SYS, TUT, UMA, WIF If you cover up the logo and only look at the K-line You might think this is some kind of chicken exchange, even dogs don't need it But this is Binance For this reason, I also specifically searched for data on extreme market conditions in the past Even if it's a super macro crash market like 312 Binance has never been like this before https://binance-deviation-report. (github.io)/ (Analyze data) And this has nothing to do with the USDe revolving loan. The low point of the Great Depression occurred even before the decoupling of USDe, BNSOL, and WVB Someone said, "Binance's extreme low price does not affect contract liquidation, because the marked price of perpetual contracts excludes quotes that deviate too much This theory is correct, but it overlooks a key reality - the spillover effects of spot price discovery. The pricing power of the USDT spot trading pair of altcoins mainly lies in Binance. If Binance's spot price is distorted, the USDT quotes of other offshore exchanges will be dragged down. Even if the marked price of perpetual contracts is not directly based on Binance data, the entire market price chain has already been affected—— The marked price is only the final settlement anchor, not the starting point of price transmission. This time, the USD fiat currency trading pair is relatively stable. In terms of AAVE, at the moment of the event: The lowest quote for AAVE/USDT (Binance) is 79.51 The lowest quote for AAVE/USD (Coinbase) is 128 The price difference between the two is close to over 50%. This kind of gap is almost impossible to occur in a normal market. And don't forget, the USD quote is actually affected by the USDT quote - it's just that the impact is passive, and arbitrageurs who smooth out the price difference need time to lay the groundwork Otherwise, Coinbase's quote should not be so low. The above total Basically, it can be inferred that there was a major problem with Binance's trading system at that time Perhaps the market maker thought they had a pending order, but in reality, the system did not help them secure it, or there was a serious error in the clearing system What exactly went wrong? So far, it's still a black box, and no one knows at all. The Binance announcement only uses vague terms such as' temporary delay in trading module ' But Binance clearly knows its losses. Otherwise, they will not proactively provide large subsidies afterwards—— Otherwise, which major warehouse explosion in history has Binance voluntarily sent money? Being willing to contribute money this time indicates that they know there is a problem. This is certainly worthy of recognition. However, this time it not only affects Binance and BSC users. The entire industry, whether it's large players, market makers, or individual investors Everything has been affected This matter is very, very serious for the entire industry. Due to the status of Binance, Equivalent to LSE or CME in traditional finance—— LSE is the core of price discovery in the global equity market, CME dominates the global pricing system for commodities. In the crypto world, Binance holds the pricing power over USDT trading pairs. If Binance has such a big problem and no one holds the entire industry accountable, not even a public doubt, then the industry will basically cool down. I didn't have much opinion on Hyperliquid at first, but now I'm starting to think that on chain might be the only solution. The regulatory strength of offshore exchanges cannot be too strong, and at least on the chain, if there is a system problem, everyone can find the cause without guessing at a black box for a long time.