Binance has disclosed that it reimbursed roughly $283 million to users affected by the market crash that occurred on October 10.

The incident was attributed to a technical glitch that disrupted trading and caused some cryptocurrencies to lose their pegs. According to Binance, the fluctuations were primarily due to global economic factors, resulting in panic-selling that led to over $7 billion in liquidations in just the first hour.

What Happened

On October 12, Binance detailed the factors that contributed to the drastic price changes in a statement.

“The forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions,” they stated.

Users who experienced collateral liquidations, as well as those facing delays in internal transfers or issues with Earn products, were fully reimbursed within 24 hours. In total, $283 million was paid to users affected by the de-pegging of Earn products linked to USDE, BNSOL, and WBETH.

Response to Concerns

Furthermore, Binance addressed worries over rapid price drops in specific trading pairs. An investigation revealed that some sudden declines were due to the activation of old limit orders from as far back as 2019, occurring in a market environment with few buy orders at the time.

While acknowledging the issue with display prices marked as “zero,” Binance confirmed that ongoing updates were being implemented to the user interface to prevent future occurrences, stressing that their API remained unaffected during this incident.

This recent market decline is now recognized as the largest liquidation event in the history of cryptocurrency, triggered by significant geopolitical events and consequently erasing nearly $1 trillion in market capitalization in just a few hours.