Binance Unmasked: How a Crypto Crash Turned the Market into a Roaring Drama!

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In the twilight of the crypto summer, Evgeny Gaevoy, the restless founder of Wintermute, spat a bitter wind over the accusation that the mighty Binance had puppeteered the October 10 tempest. He denounced the blame‑game as an “intellectually dishonest” pantomime-as if the market were a stage set for a one‑man show and Binance the diva demanding applause.

“Find a scapegoat, dear friends, and you’ll wrap yourself in a blanket of comfort. It will never tell you why the river churns.”

The backlash to Okx’s Star Xu was sharp as a hedge fund’s winter jacket. Xu castigated Binance for flaunting 12% yields on USDe while quietly allowing the token to serve as collateral-no moral scaffolding, no hazard signs, just an alluring mirage.

The event charmed a deal of billions of dollars into oblivion during the dreadful October 10, a day that reshaped the very bones of crypto microstructures, according to Xu. Yet Gaevoy shrugged. “A bear market does not come with a manual,” he wrote. “Treading water in its cold drafts is the only lesson you need.”

Macro Conditions as the Catalyst for Leverage Chaos

Gaevoy declined to be reduced to a narrow caricature: this was no “software glitch.” It was the boiling point of a market starved of traders, a flare that erupted when the tailwinds of macro news hit the unmoored liquidity and sent a tidal wave of liquidations through the night.

“Public figures ought to choose words with care,” he quipped. “‘10/10 was not a ‘software glitch.’ It was a flash crash on a mega‑leveraged market at the lonely hour of Illiquid Friday Night repelled by macro news.”

And since we are here, I get that nobody likes to live in a bear market-watching every other asset class rise while you’re left chewing on your own bitter losses.” – wishful_cynic (@EvgenyGaevoy) January 30, 2026

He laughed at the notion that we could pin the collapse on one colossal beast. The playful tone-almost bitterly humorous-reflected his deep cynicism about scapegoat‑loving markets.

Star Xu: Exposing the USDe Leveraging Loop

Star Xu, head of OKX, unveiled the mechanics of the Binance‑led USDe feeder: a cyclical dance-USDT to USDe for 12% yields, then borrowing USDT against USDe, converting that back to an even bleaker USDe. The loop, Xu insisted, was the silent architect of systematic risk.

No complexity, no accident. Ten‑10 was wrought by reckless marketing. “On that day, tens of billions were liquidated,” Xu said.

As CEO of OKX, we witnessed a tectonic shift in crypto’s microstructure after October 10. The market’s bones had been forever altered. – Star (@star_okx) January 31, 2026

With APYs climbing to terra‑famous levels-24%, 36%, even surpassing 70%-the allure was almost intoxicating. But when the macro flames erupted, USDe snapped from its peg as readily as a thread in a fine dress. Liquidation cascades thundered through WETH and BNSOL, and some tokens glowed near zero as if mourning a forgotten saint.

So, as the market waltzes in its bruised sleeve, the lesson-perhaps the most Botox‑less satire of all-is that whether you are a colossus or a fox, the market is always the one that may write you off before your page in the ledger. And who knows? Maybe the grand drama will pass and we’ll remain mere spectators, sipping tea at a window, watching fortunes rise and fall like the cicadas of an endless summer.

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2026-01-31 22:04