The cryptocurrency market’s dramatic sell-off on October 10, 2025, dubbed “10/10” by traders, has renewed scrutiny on Binance, as questions arise about whether the exchange amplified the historic flash crash.
The event wiped out leveraged positions across multiple platforms in minutes, following Bitcoin’s all-time high of $126,000 less than five days earlier.
📊 The mass reported liquidations on October 10, 2025 have been in traders’ crosshairs as the community has looked to investigate the transparency of crypto’s largest entities. Our latest deep dive looks at the drama and alleged shadiness, and how the current landscape has pushed… pic.twitter.com/mIUcg2tQqd
— Santiment (@santimentfeed) February 13, 2026
Flash crash dynamics and liquidation loop
According to Santiment, Bitcoin dropped 14% in under eight hours, triggering forced liquidations that fed a rapid feedback loop. Altcoins suffered even steeper losses: Litecoin fell 51%, Toncoin 41%, and Dogecoin 39%.
When traders’ collateral failed to cover leveraged positions, exchanges automatically closed their trades, sending new sell orders into the market and accelerating the crash. Binance, handling a large share of liquidations, became the focal point for frustrated traders, particularly as some assets displayed abnormal price swings on its platform compared to others.
External catalysts and trader sentiment
Experts note that the crash coincided with geopolitical tensions. A post by former U.S. President Donald Trump threatening new tariffs against China sparked panic in global markets.
The S&P 500 and Bitcoin reacted almost immediately, highlighting the broader market sensitivity. Binance co-CEO Richard Teng emphasized that the primary driver was macroeconomic and geopolitical, not manipulation by the exchange. However, traders remain frustrated, citing difficulties managing leveraged positions during peak volatility and linking recent Binance outflow reports to lingering concerns from the 10/10 crash.
While Binance has defended its operational integrity, the 10/10 event underscores the vulnerability of highly leveraged crypto markets to sudden macro shocks. Traders and analysts agree that exchanges may appear to bear the brunt of blame. Still, the combination of leverage, thin liquidity, and global uncertainty played the decisive role in one of crypto’s most volatile episodes.
In another development, Binance has completed the full conversion of its $1 billion emergency insurance fund into Bitcoin, reinforcing its stance on BTC as a long-term reserve asset despite worsening crypto market sentiment.
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