Binance to Distribute $300M to Crypto Traders Rekt in Record Liquidations

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On the fateful days of October 10 and 11, the crypto world witnessed what can only be described as a monumental catastrophe. A staggering $19 billion vanished into the ether-poof, gone-leaving traders who were “rekt” crying into their keyboards. Why, you ask? The grand spectacle of failed security protocols and markets collapsing faster than you can say “liquidation!” Investors and speculators, poor souls, were caught in the storm of unprecedented losses as cryptocurrencies plummeted, and confidence evaporated like morning fog.

But wait, fear not, dear traders, for Binance, the heroic knight in shining armor (at least, that’s what it wants us to believe), has come to the rescue. On October 14, the exchange unveiled what it called “The $400 Million Together Initiative” in a valiant attempt to restore order to the chaotic, freefalling world of crypto. This masterstroke of a plan involves distributing $300 million in token vouchers-yes, you heard it right, vouchers!-ranging from $4 to $6,000, to the very same traders who saw their fortunes vaporized.

So, who gets these magical token vouchers? Well, if you were among the poor souls who experienced a forced liquidation loss of $50 or more across futures and margin trading during those catastrophic two days, and if those losses were equal to 30% or more of your net assets, then congratulations! You might be eligible. Hold on, though. You’ll have to wait until October 15 to find out, as distribution will begin precisely 24 hours after the announcement. It’s like waiting for Christmas, only with fewer presents and more zeros.

Oh, and in a show of unparalleled generosity, Binance is also setting aside a mere $100 million for a low-interest loan fund aimed at helping “institutional users severely impacted by this market fluctuation.” A small price to pay for the restoration of crypto’s glory, no? The whole world is watching!

“We expect this to inject momentum into ecosystem participants’ recovery, alleviate liquidity pressures, and maintain stable operations for ecosystem partners. Eligible VIP and institutional users can submit applications through their dedicated account managers. We will provide a fast response and maintain strict confidentiality,” the official announcement declares. Sounds comforting, doesn’t it?

Dark Friday: Largest-Ever Crypto Liquidation, $19B Rekt

And then, my dear reader, came the fateful Dark Friday, October 10. What triggered this chaos? A tweet from none other than President Donald Trump himself, suggesting the imposition of 100% tariffs on Chinese imports. What a bombshell, right? That tweet was like lighting a match in a barrel of gunpowder.

Bitcoin, once holding strong at a tantalizing $122,000, suddenly dropped to as low as $104,000 in mere hours. Ethereum? Even worse. Smaller cryptocurrencies? Well, they didn’t just fall-they plummeted like an anvil off a cliff. Zcash, the oddball of the day, was one of the only assets to finish the day with a green candle, its shielded ZEC percentage growing like a stubborn weed in a field of wreckage. But who are we kidding? This was no garden of tranquility. This was carnage.

Reuters reports that more than $19 billion in leveraged positions were wiped off the exchanges, as 1.6 million accounts suffered. Most of them were long positions, of course, the ones betting on ever-increasing prices. Stablecoins like Ethena’s USDe briefly lost their peg, dipping to a miserly 65 cents, thanks to some delightful technical glitches and abysmally low liquidity.

Market makers-those supposed custodians of stability-decided to take a vacation, pulling back just when they were needed the most, leaving a vacuum that turned the sell-off into a full-fledged collapse. This wasn’t just a crash; it was a cascading disaster. Platforms like Hyperliquid and Bybit were hit hard, with over 6,300 wallets caught in the fallout. And as the dust settled, the liquidity began trickling back in… but only after the worst of it had passed.

Dear friends, thx for long waiting. Let’s go with Chapter 4: liquidity vacuum. Today, I turn to perhaps the most critical yet underappreciated aspect: how market makers-the entities supposedly providing market stability-became primary catalysts in creating an unprecedented…

– YQ (@yq_acc) October 13, 2025

But don’t fret, the excitement is far from over. Just a day later, October 14 saw another round of liquidations, this time to the tune of $624 million as Bitcoin once again failed to hold its ground. Traders, now more cautious than ever, have turned to hedging, and options activity has skyrocketed. Binance’s recovery plan has arrived just in time to inject liquidity back into the market and restore confidence-if not in the market itself, then at least in their ability to make a quick buck off of it. 💸

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2025-10-15 03:21