BlockBeats News, January 31st. Former FTX community partner Benson Sun stated that he believes Binance bears responsibility for the 1011 flash crash, but the core issue is not with USDe, as the timeline does not match. The market’s lowest point was at 5:20, with USDe hitting its low of $0.65 at 5:54. The lowest point of the depegging occurred 30 minutes after the market began to rebound, indicating that USDe’s extreme depegging was a secondary disaster rather than the trigger of the crash.
Benson stated that based on the analysis of extreme market history over the past 6 years, during each extreme market event, the price difference between Binance and other exchanges has been within 5%. However, on 1011, over half of the coins on that day had Binance prices as the lowest across the board, with many deviations exceeding 50% or even 100%. Such a scale of price disparity has never occurred in any previous black swan event. Moreover, the trading pair price of the same coin on USDT was significantly lower than the USD trading pair at that time. It is deduced that Binance’s system should have had issues at that time. If the root cause was elsewhere, Binance, with the best liquidity, should not have had the lowest prices. Additionally, liquidity providers withdrawing liquidity was not the main cause. It is a good thing for OKX Star to express their views publicly, but the focus may have been misplaced.
