Haciyev Reşit 
Crypto exchange Binance has announced that it compensated affected users with $283 million following the sharp market shocks that occurred last Friday. In an official statement released Sunday night, the exchange described the incident as “macro-driven volatility” and emphasized its commitment to prioritizing user protection. Binance pledged to continue taking swift and effective actions to minimize user losses during periods of intense market turbulence.
Macroeconomic Stress and Market Volatility
In its statement, Binance noted that global macroeconomic conditions triggered sharp sell-offs across cryptocurrency markets. The U.S. China trade tensions and broader macroeconomic uncertainty fueled panic among investors, leading to sudden liquidity demands.
The exchange clarified that the situation should not be mistaken for a platform malfunction, stressing that the disruptions were the result of overall market volatility, not internal system issues.
During this period, both institutional and retail investors were forced to downsize their portfolios due to rising selling pressure, causing brief but steep declines in crypto asset prices. Binance reaffirmed that market volatility is a natural part of the ecosystem, and its systems are designed to withstand such abrupt fluctuations.
Platform Operations and Forced Liquidations
Some users suspected trading errors or system failures on Binance; however, the exchange confirmed that its futures, spot matching engines, and API-based trading systems were fully operational throughout the event.
Binance stated that the forced liquidation volume was relatively low compared to overall trading activity. Nonetheless, tokens such as USDe, BNSOL, and WBETH experienced short-term value drops during the market shock. As a result, users who had used these assets as collateral saw their positions liquidated.
The exchange emphasized that such events are a natural outcome of market mechanisms and reminded users to closely monitor their collateral and risk exposure when trading on the platform.
$283 Million Compensation Payout
Binance completed compensation payments to affected users within 24 hours, issuing reimbursements in two separate rounds totaling approximately $283 million.
In its official statement, the exchange said:
“When the loss in value led to the liquidation of positions held by some users using these assets as collateral, Binance took full responsibility and fully covered their losses. The safety and satisfaction of our users will always remain our top priority.”
The payout process was designed to ensure that user losses were reimbursed quickly and transparently. Binance also announced that it is continuously reviewing its systems to further strengthen the efficiency of its compensation mechanism during periods of extreme market stress.
Old Orders and “Zero Price” Errors
Following a detailed review, Binance revealed that part of the recent market confusion stemmed from some old limit orders that had been open since 2019. In particular, trading pairs with low liquidity such as IOTX/USDT and ATOM/USDT saw these outdated orders execute at extreme prices, creating the perception of a sudden crash for a brief period.
The exchange stated that it continuously optimizes its liquidity and order management systems to minimize the impact of old orders on the market. While this incident caused a short-term volatility spike for users, Binance confirmed that there was no disruption to the overall functioning of the platform.
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