Crypto Titans Collide: Exposing the Real Trigger Behind the Epic 10/10 Black Friday Crash

What Was the <10/10 Black Friday Crash>?

On October 10, 2025, the crypto market faced a massive shock. This event, now known as the <10/10 Black Friday Crash>, wiped out between $19 billion and $28 billion in leveraged positions in just hours. Bitcoin and other top coins plunged hard. During the chaos, Binance saw USDe, a yield-bearing stablecoin, drop to as low as $0.65 on its order book. This caused a $2.2 billion market cap loss just on that platform.

Months later, the debate rages on. Top Web3 leaders point fingers at different causes: too much leverage, risky yield products, or exchange problems. This clash among crypto titans reveals deep divides in the industry.

Cathie Wood Points to Binance Glitch

ARK Invest CEO Cathie Wood kicked off the public fight. On Fox Business in January 2026, she called the crash a result of a $28 billion deleveraging wave. She blamed a “Binance software issue on October 10.” Wood said forced sales from this drove most of the pain. She believes the worst is over now.

Her words spread fast. Many saw it as a direct hit on Binance, the biggest crypto exchange.

Wintermute Founder Pushes Back: It’s Systemic

Wintermute founder Evgeny Gaevoy hit back soon after. He called it a macro flash crash, not a single glitch. High leverage, low liquidity, and auto-risk systems from market makers pulled liquidity everywhere at once.

“Blaming one exchange is lazy thinking,” Gaevoy said. He urged looking at the big picture instead of scapegoats.

OKX CEO Star Xu Blames Yield Chasing

The heat turned up when OKX CEO Star Xu jumped in. In a detailed X post, he said, “No complexity. No accident.” Xu blamed reckless yield marketing and leverage perks.

He targeted a Binance promo: 12% APY on USDe, used as collateral like safe stablecoins USDT or USDC, with no real limits. USDe from Ethena isn’t a plain stablecoin. It’s a tokenized fund betting on arbitrage and algo trades. This packs hedge fund risks into what looks like safe money.

“Unlike BlackRock’s BUIDL or Franklin Templeton’s BENJI, USDe hides high risk,” Xu noted. He said such incentives built a leverage bomb ready to blow.

CZ and Binance Fight Back

Binance co-founder CZ Zhao responded quick. He questioned Xu’s motives, noting Dragonfly Capital (a big OKX backer) ties. “Data speaks. Timelines don’t match,” CZ tweeted. Dragonfly’s Haseeb Qureshi called Xu’s take “ridiculous.”

Binance then dropped its official report. They blamed a macro risk-off event: trade war news, $100 billion+ in derivatives open interest, and market makers pulling back via auto rules. Their core systems worked fine.

They admitted short glitches in USDe, WBETH, and BNSOL prices. But 75% of liquidations happened first. The crash was rolling before that.

Binance paid $328 million to hurt users, started a $300 million support fund, and added new safeguards.

Why This Matters

The <10/10 Black Friday Crash> isn’t just history. It’s a warning. Leverage amplifies wins and losses in crypto. Yield products promise easy gains but hide dangers. When markets turn, thin liquidity sparks cascades.

• Lesson 1: Stablecoins aren’t all equal. Check what’s backing them.
• Lesson 2: Exchanges must flag risky collaterals clearly.
• Lesson 3: Market makers’ auto-pulls can worsen crashes.

This feud shows crypto growing up. Leaders argue to build safer systems. But unity lacks. Was it inevitable from greed, or avoidable with better rules?

What’s Next for Crypto After the Crash?

Post-crash, Bitcoin rebounded some. But trust in yield stables like USDe dipped. Regulators watch closer. Exchanges tighten leverage caps.

Investors now ask: Can Web3 handle big money without big busts? Debates like this push fixes. Watch for more clashes as crypto eyes new highs.

The <10/10 Black Friday Crash> exposed cracks. Fixing them could make crypto stronger.

Key Takeaways from the CEO Clash