Data from CryptoSlate showed that BNB surged 17% in 24 hours, outperforming other top-ten cryptocurrencies by market capitalization.
So, BNB’s strong price recovery reflected renewed confidence in Binance’s ecosystem despite the exchange’s recent operational issues.
These disruptions intensified frustration among traders, who argued that Binance’s dominant position in global trading volume meant it should have been more resilient to market turbulence.
The exchange attributed the losses to intense volatility and temporary failures in its collateral and pricing modules.
Binance said it reimbursed affected users and pledged to extend redress for delays in transfers and redemptions.
Meanwhile, on-chain analysts speculated that the disruptions could have been triggered by a coordinated exploit targeting Binance’s unified margin system.
Hiesboeck noted that the incident appeared timed between a scheduled software patch and its deployment, creating a vulnerability window that may have caused $500 million to $1 billion in cumulative losses.
He warned that the situation echoed systemic risk events such as Terra’s collapse and stressed that centralized risk models remain fragile during extreme volatility.
However, Binance rejected the notion of a targeted exploit, emphasizing that its core spot and futures engines operated normally during the turmoil.
The company said its internal review showed forced liquidations made up only a minor share of trading volume, suggesting the broader market shock, not an internal error, drove the sell-off.
The exchange also clarified that brief price dips in tokens like IOTX and ATOM resulted from long-standing limit orders. It added that some user dashboards’ “low price” readings were display errors rather than executed trades.
