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Binance Pays $283 Million After Depeg Triggers Liquidations

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Binance has confirmed that it has refunded $283 million to users affected by a recent wave of liquidations triggered by asset depegging during severe market volatility. The compensation was issued after USDe, BNSOL and wBETH briefly lost their pegs, leading to a cascade of liquidations across several trading products. According to Binance, the refund procedure has been completed within 24 hours.

Despite the chaos, the exchange said its core systems remained functional throughout. It attributed the outage to overall market conditions rather than any internal technical failure.

What really happened on October 10th

On October 10, a sudden market crash triggered widespread forced liquidations across multiple platforms. Binance said That this extreme volatility was the backdrop to the depegging events which involved three key assets: USDe, which is a synthetic dollar token, BNSOL, which tracks Solana in liquid staking, and WBETH, which is a wrapped version of staking Ether.

Each of these briefly detached from They expected values. Traders noticed huge price swings, and in some cases, the tokens appeared to hit zero. Binance later clarified that some of these “zero price” events were due to display errors and not actual price drops to zero. However, the impact on trading positions was real.

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Who was paid and how it was calculated

The $283 million payment covered users whose positions were liquidated while using any of the affected tokens as collateral through Binance’s margin, futures or lending services. The exchange calculated the compensation by comparing THE clearance prices TO external market reference prices recorded at midnight UTC ON the next day.

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Aside from the liquidations, Binance also acknowledged delays in internal transfers and its Earn product ransoms. It promised automatic compensation within 72 hours for users affected by such issues and said that such cases are under review separately.

A move that isn’t just about money

The size and speed of the refund attracted attention. Some market observers have noted that this type of prompt payment is rare. Even though the move clearly covered financial losses, some believe it it was also targeted to strengthen user trust, especially in the wake of recent leadership changes and direct control over centralized exchanges.

Analysts noted that while $283 million is a large sum, it still represents a small portion of Binance’s total trading volume and reserves. Even so, the gesture stood out as repeated crises in recent months have tested trust in centralized platforms.

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What Binance is doing to prevent a repeat

To reduce the risk of similar issues in the future, Binance announced that it will include redemption prices in price index calculations for certain assets. It also introduced minimum price thresholds for USDe, with the aim of prevention greater discrepancies during market stress.

The platform also pledged to continuously monitor and said it will report any suspicious activity related to the incident to regulators. This event highlighted how quickly liquidity problems can spread through the system and put pressure on platforms to respond quickly and transparently.

Whether this episode restores long-term confidence or raises further questions will depend on what happens next. Binance’s response was swift, but the stakes will only increase from here on out.

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Key points

  • Binance has refunded $283 million to users affected by the October 10 incident involving USDe, BNSOL and wBETH.

  • Binance issued compensation within 24 hours, covering liquidations of margin products, futures and loans.

  • Some tokens appeared to hit zero due to display errors, but the trading losses were real and triggered forced liquidations.

  • Binance said the problem was market-driven, not a technical failure, and has since added price protections to reduce future risks.

  • Analysts saw the payment as a move to restore user trust, especially as centralized exchanges are under constant scrutiny.

The post Binance Pays $283 Million After Depeg Liquidation appeared first on 99Bitcoins.

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