Benson: The key issue behind the 1011 flash crash is not USDe, but Binance experienced an abnormal spread at that time

BlockBeats News, January 31st, Coinkarma founder Benson Sun stated that the 1011 crash was indeed Binance's responsibility, but the core issue was not with USDe, as the timelines do not match up. The market's lowest point was at 5:20, with USDe hitting its low of $0.65 at 5:54. The lowest point of the de-pegging occurred 30 minutes after the market began to rebound, indicating that USDe's extreme de-pegging was a secondary disaster rather than the trigger for the crash.

Benson stated that based on the analysis of extreme market history over the past 6 years, during each extreme market event, the price difference between Binance and other exchanges has almost always been within 5%. However, on the day of 1011, over half of the coins on Binance were priced the lowest across all platforms, with many deviating by over 50% or even 100%. This level of price disparity has never been seen in any previous black swan event. Additionally, the trading pair of the same coin on Binance with USDT was significantly lower than the pair with USD at that time. By inference, it can be concluded that Binance's system was likely experiencing issues at that time. If the root cause was elsewhere, the exchange with the best liquidity, Binance, should not have had the lowest prices. Furthermore, liquidity provider withdrawal was not the main cause. OKX Star's public statement sparking discussion is a good thing, but the focus may have been misplaced.