Wintermute founder Evgeny Gaevoy dismissed claims that Binance caused the October 10 crypto market crash, calling attempts to blame a single exchange intellectually dishonest. He argued that macro news hit an overleveraged market during illiquid hours, triggering liquidations. OKX CEO Star Xu contended that USDe leverage loops amplified systemic risk across crypto markets. Writing on X, Gaevoy described the event as a flash crash on a mega leveraged market on illiquid Friday night driven by macro news rather than platform-specific failures.
Gaevoy countered that finding a scapegoat is comfy during bear markets but does not address underlying market conditions. Systemic risk accumulated quickly across the global crypto market, Xu wrote. “I am discussing the root cause, not assigning blame or launching an attack on Binance,” Xu stated.
The macro catalyst caused liquidations across leveraged positions, with total crypto market capitalization falling 23.7% in Q4 2025 according to CoinGecko data. On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day. The comments responded to OKX CEO Star Xu’s criticism that Binance irresponsibly marketed USDe with 12% yields while allowing the token to serve as collateral without proper risk warnings.
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