The "1011 Flash Crash" incident has sparked a fierce public relations battle, with OKX pointing fingers at Binance for the first time, and CZ accusing the competitor of using a paid army to spread FUD.

BlockBeats News, January 31st, this morning, Binance founder CZ responded to the recent FUD in the market, stating that the "1011 Flash Crash" was not caused by any Binance system issue or Binance operation. Binance is currently under proper regulation and is not in a position to conduct any irregular operations. No website or trading platform can guarantee 100% uninterrupted operation. The user agreement clearly states that such situations may occur, and the platform is not liable. Binance did experience some systemic performance issues during peak hours, but the platform has done a good job compensating for any resulting losses.

OKX founder Star later posted on social media, for the first time after several implicit references, explicitly calling on Binance to take responsibility, stating that the "1011 Flash Crash" was triggered by Binance's irresponsible USDe activities. Binance encouraged users to convert USDT and USDC to USDe to earn attractive returns but did not sufficiently emphasize the underlying risks, ultimately leading to a minor market impact causing a market collapse.

Wintermute founder Evgeny Gaevoy apparently agrees more with Binance's response, stating that the "1011 Flash Crash" was clearly not a software failure but rather a super-leveraged market flash crash triggered by macro news on a low-liquidity Friday evening. No one likes a bear market, but blaming a single exchange platform is not honest from a cognitive perspective.

Solana co-founder Toly retweeted OKX Star's relevant tweet and sarcastically commented, "Only 18 months since the incident and recovery." (SOL rebounded to the 2021 bull market level 18 months after the FTX crash)

Meanwhile, Binance CEO He Yi personally responded to community inquiries, stating that the whale (Wintermute) has a clearer understanding of what happened at the time and more credibility. He mentioned meeting Star in December 2025, where the 1011 incident was not brought up, but is now frequently challenged.

In an AMA, CZ also mentioned that there are recent instances of competitors hiring "water army" to maliciously spread FUD. There are also users who did not incur losses in the 1011 event but are hoping to pressure Binance for compensation, although these voices remain a minority.