Binance has rejected claims that an internal systems failure caused the October crypto flash crash, pointing instead to macroeconomic shocks and market structure dynamics.
The exchange said the sell-off reflected a broader risk-off event that affected both digital assets and traditional financial markets at the same time.
In a blog post published on January 30, Binance argued that heavy leverage, thin liquidity, and automated risk controls combined to amplify price moves.
“On October 10, 2025, the crypto market faced a macro shock. While some placed the blame on a Binance glitch, the reality was that cascading liquidations were driven by macro risks from highly leveraged positions, market makers’ risk controls limiting liquidity, and Ethereum network congestion delaying transfers,”
Binance said.
The company explained that trade-war headlines triggered a global pullback after months of rising asset prices and expanding derivatives exposure.
Binance noted that open interest across bitcoin futures and options had climbed above $100 billion, leaving the market highly sensitive to sudden volatility.