Published: February 2, 2026
October 10, 2025 remains one of the most infamous days in cryptocurrency history. In less than 24 hours, futures markets liquidated over $19 billion across major exchanges — with Bitcoin, Ethereum, Solana and dozens of altcoins experiencing violent flash-crash style moves. Binance, the world’s largest crypto exchange by volume, absorbed the lion’s share of public anger: users reported frozen balances, delayed transfers, index price deviations, and in some cases zeroed-out positions during the chaos.
Despite Binance eventually compensating affected users with roughly $328 million and publishing multiple post-mortems, the “Binance caused the 10/10 crash” narrative has proven remarkably durable. In early February 2026 — with BTC once again testing $77,000 support after another heavy liquidation day ($2.2B+ on Feb 1) — the 10/10 blame game has resurfaced in forums, X threads, Reddit, and even mainstream finance commentary.
This comprehensive 2026 update revisits the October 10 event, separates documented facts from persistent myths, examines the real drivers (macro shock + extreme leverage), compares it to the current 2026 sell-off, and explains why Binance remains the scapegoat more than a year later.
October 10, 2025 – Timeline of the $19 Billion Liquidation Cascade
| Time (UTC) | BTC Price Move | Cumulative Liquidations | Key Event / Exchange Issue |
|---|---|---|---|
| Oct 10, ~18:00–19:00 | $62,800 → $59,200 | ~$3.8B | Initial macro shock (US CPI surprise + tariff news) |
| 19:00–20:30 | $59,200 → $54,100 (low) | ~$11.2B | Binance reports transfer slowdowns & index deviations |
| 20:30–22:00 | $54,100 → $57,800 | ~$15.7B | Peak hourly liquidation ~$360M; Binance zero-balance complaints |
| 22:00–Oct 11 early | $57,800 → $61,200 | ~$19.1B total | Short squeeze + dip-buyers stabilize; Binance begins compensation |
The most violent phase occurred between 19:00–21:00 UTC — during US/Asia session overlap when liquidity is notoriously thin. Binance accounted for ~55–60% of total liquidations (per Coinglass estimates), which fueled the perception that platform-specific issues were the primary cause.
What Actually Happened on Binance – Facts vs Persistent Myths
Confirmed Binance issues (from official post-mortems and third-party reports)
- Transfer delays and temporary halts on withdrawals/deposits during peak volatility
- Index price deviations on some perpetual contracts (up to 2–3% lag vs spot)
- Several users reported temporary zero or negative balances (later corrected)
- Funding rate spikes and forced liquidations at prices worse than spot due to thin order books
Binance’s defense & compensation
- 75% of liquidations occurred before the reported slowdowns (Kaiko & internal data)
- Macro shock (surprise US CPI print + tariff escalation headlines) initiated the move
- Compensated ~$328 million to affected users (primarily slippage & abnormal liq prices)
- Upgraded circuit breakers and added more index price feeds post-event
Most persistent myths debunked
- Myth: “Binance intentionally crashed the market / manipulated prices” → No credible evidence; regulators found no wrongdoing
- Myth: “All $19B came from Binance” → Binance ~55–60%, Bybit/OKX/Binance.US combined ~30–35%
- Myth: “It was only an exchange failure, not macro” → CPI surprise + tariff news were the initial spark
Comparison: October 2025 vs February 2026 Crashes
| Metric | Oct 10, 2025 | Feb 1–2, 2026 | Similarity / Difference |
|---|---|---|---|
| Total Liquidations (24h) | $19.1B | $2.2B (single day peak) | 2025 far larger in absolute terms |
| Primary Trigger | Macro shock + extreme leverage | Fed pause + tariff fears + leverage flush | Macro always the root |
| Binance Blame Level | Very high (public outrage) | Moderate (focus more on macro) | 2025 had more exchange-specific complaints |
| Compensation Paid | $328M by Binance | Ongoing (smaller per-exchange amounts) | Similar pattern |
| Post-Crash Outcome | Multi-week consolidation → new highs by Dec 2025 | TBD (early Feb 2026) | Capitulation often precedes reversal |
Trading Lessons from 10/10 – Still Relevant in 2026
- Leverage Kills in Low-Liquidity Windows
75% of 10/10 liqs happened during Asia/US overlap — same window as Feb 1–2, 2026 spikes. Avoid high leverage during weekends/early Asia sessions. - Macro Always Trumps Exchange Issues
Every major crash cycle (2018, 2022, 2025, 2026) starts with macro shock. Blaming one exchange misses the forest for the trees. - Extreme Fear = Capitulation Opportunity
Both 10/10 and current 2026 crashes saw Fear & Greed drop to ~20–25. Historically, these levels precede major reversals (2020 COVID, 2022 FTX bottom). - Diversify Custody & Platforms
Multiple reports of users locked out during peak volatility. Spread assets across exchanges and consider cold storage for long-term holds.
Trade the Next Move on Tapbit
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT or JPY via bank / P2P
- Capitulation dip buy: DCA BTC/USDT at $77k–$79k exhaustion zones
- Relief rally play: Long BTC/USDT perpetuals on $82k–$85k reclaim (20–50x, isolated)
- Safe-haven hedge: Long XAU/USDT perpetuals if risk-off deepens
- Risk control: Max 1–2% account risk per trade; trailing stops below lows
Conclusion: The Crash Narrative That Refuses to Die
October 10, 2025’s $19 billion liquidation event — fueled by macro shock, extreme leverage, and thin liquidity — remains the benchmark for crypto “black swan” moments. While Binance faced legitimate operational complaints and paid $328 million in compensation, the evidence shows macro triggers and over-leveraged longs were the dominant forces — not a single exchange “causing” the crash.
In February 2026, with BTC again testing $77,000–$78,000 after another $2.2B liquidation day, the 10/10 blame game has resurfaced — this time as a cautionary tale about persistent leverage risks and macro fragility.
Trade Bitcoin volatility & macro-driven moves on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Past events and technical patterns do not guarantee future results. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
