Michaela
Crypto exchange Binance has informed users that several tokens briefly appeared as $0 on its platform following Friday’s crypto market crash, clarifying that actual orders and balances remained aligned with true market values.
Key points:
- Several tokens on Binance briefly displayed $0 due to a user interface “display issue,” not actual market crashes, affecting altcoins like IoTeX, Enjin, and Cosmos.
- Exploiters manipulated Binance’s internal pricing system, triggering $500M–$1B in forced liquidations and contributing to a global $19B market cascade.
- Binance has pledged $283M in compensation, while Crypto.com CEO Kris Marszalek called for regulatory review of exchange practices amid concerns over volatility and safeguards.
Binance clarified in an official statement that several tokens appearing as $0 were the result of a “display issue,” not an actual market crash. Altcoins like IoTeX, Enjin, and Cosmos briefly showed $0 on the platform, even though prices remained above zero on other exchanges.
The exchange explained that changes to decimal precision for certain trading pairs, such as IOTX/USDT, caused the user interface to display zero prices, while actual market values were unaffected.
Crypto trader ElonTrades claims that the flaw in Binance’s internal pricing system for these tokens was exploited by traders. Binance was valuing collateral using its own order books instead of external oracles, which allowed roughly $60–90 million of USDe to be dumped on the platform, artificially dropping its price to $0.65, while it remained around $1 elsewhere.
This caused Binance’s system to mark collateral at those deflated prices, triggering $500 million to $1 billion in forced liquidations on the exchange. Other exchanges mirrored the collapse, creating a global cascade that wiped out over $19 billion in positions. The exploiters had prepared in advance by opening $1.1 billion in BTC and ETH short positions on Hyperliquid, which netted $192 million in profit as prices fell. The event was further amplified by external factors, including market panic from news about President Donald Trump’s China tariffs.
Binance has already committed $283 million in compensation for users affected by the depegging incident, yet demand for clarity on the events of the weekend continues to grow.
Crypto.com CEO Kris Marszalek has urged regulators to examine cryptocurrency exchanges in the wake of a weekend market crash that erased approximately $20 billion in leveraged positions. He raised concerns over whether the platforms faced technical disruptions, mispriced assets, or failed to maintain essential safeguards, including anti-manipulation and compliance measures, during the volatile trading period.
The weekend turmoil serves as a reminder of how quickly digital asset markets can cascade, leaving traders, platforms, and regulators grappling with questions of accountability and oversight.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
