Binance said it will compensate a group of users affected by Friday’s extreme market swings that caused three major tokens to lose their peg and triggered forced liquidations.
The exchange confirmed On Saturday, October 11, users who held Ethena’s USDe, BNSOL, or WBETH as collateral on its platform between 9:36 PM and 10:16 PM UTC on October 10 will receive compensation.
During that 40-minute period, the prices of those assets briefly diverged from their benchmarks, triggering automatic liquidations.
What triggered the $19 billion liquidation in global trade?
Binance he said the incident was linked to unusual volatility and internal platform issues. Users affected by the Futures, Margin and Loans products will have their accounts automatically reviewed, with payments processed within 72 hours.
The compensation will correspond to the gap between a trader’s liquidation price and the market price as of 00:00 UTC on October 11.
Binance will also refund any settlement fees charged during the event. Users whose cases fall outside this scope can contact customer support for a review, although the company has clarified that normal trading losses and unrealized gains will not be eligible.
The move follows what analysts have described as one of the largest liquidation events ever recorded in the cryptocurrency sector.
According to Bloomberg relationshipAbout $19 billion in positions were wiped out from global stock exchanges in 24 hours, hitting around 1.6 million traders after news of new US tariffs rocked markets late Friday.
On Binance, USDe momentarily fell to a low of around $0.65, before rising again, indicating that liquidity is extremely weak when volatility is extremely high.
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What steps is Binance taking to prevent another liquidation event?
The exchange indicated it is undertaking a full review to prevent similar events from happening again as users still wanted stronger protection after one of the most turbulent trading periods of 2025.
To prevent such incidents, Binance is changing price index calculations and risk parameters.
The exchange will now have redemption prices based on the index weights of BNSOL, WBETH and USDE, set a floor price for USDE and review risk settings more frequently.
In 2023, Binance CEO Richard Teng replaced co-founder Changpeng “CZ” Zhao and apologized to the platform’s users who suffered during the market storm.
“I am truly sorry to everyone who has been affected,” Teng said in one send on X. “We don’t make excuses, we listen, we learn and we commit to doing better.”
The last 24 hours have been turbulent for the cryptocurrency market and I know many of you have faced challenges on our platform. I’m truly sorry to everyone who was affected.
We don’t make excuses: we listen carefully, we learn from what happened and we commit to doing better. If you are…
— Richard Teng (@_RichardTeng) October 11, 2025
Soon after his message, Binance published a detailed follow-up explaining its compensation plan for traders involved in the wave of liquidations.
Responding to the broader fallout, Crypto.com CEO Kris Marszalek called on regulators to review exchanges that have seen unusually high settlement volumes.
Regulators should look at the exchanges that had the most liquidations in the last 24 hours and conduct a thorough review of the fairness of the practices. Are any of them slowing to a stop, effectively preventing people from trading? Were all transactions priced correctly and in line with indices?… pic.twitter.com/UCD6iKuKFQ
— Kris | Crypto.com (@kris) October 11, 2025
He made this statement in a post on X, echoing industry concerns about the chain reaction caused by automated liquidations across multiple trading platforms.
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