The market continues to experience extreme volatility triggered by macroeconomic downturns and a sharp drop in major crypto assets. Binance announced plans to allocate $400 M to support affected users and institutional clients.
The initiative includes USDC compensation for traders who lost funds due to forced liquidations, as well as a preferential lending program for companies facing liquidity shortages.
User Compensation
Binance has pledged to distribute $300 M in USDC to users who suffered losses from liquidations on futures and margin markets between October 10 and 11, 2025. Eligible traders are those whose forced liquidations exceeded $50 and amounted to at least 30% of their net assets as of October 9.
According to the company’s statement, payout amounts will be calculated individually, taking into account the size of the losses and other factors. Transfers will begin within 24 hours of the program’s launch and are expected to be completed within 96 hours.
Support for Institutional Clients
The second part of the initiative involves the creation of a $100 M fund for institutional market participants and ecosystem partners most affected by recent market swings. The funds will be distributed as low-interest loans to help companies resume trading and stabilize operations.
In its official statement, Binance said the program’s goal is to restore confidence in the industry and strengthen the ecosystem’s long-term development. The company acknowledged that the recent crisis damaged investor trust but emphasized its commitment to supporting users despite not being directly responsible for their trading losses.
Community Accuses Binance of Manipulation and System Failures
Despite Binance’s assurances, social media is flooded with criticism. Users have posted hundreds of messages accusing the exchange and its leadership of manipulation and negligence. Some are calling for an investigation and even the arrest of the CEO.
- User @thegreatola mocked Binance’s explanation of the recent outage, suggesting the exchange intentionally manipulated the market.
- Another user, @CryptoCowboy_AU, called Binance “the biggest frauds in the crypto space.”
- Many traders reported being unable to access the exchange during the crash. Stop-loss and limit orders reportedly failed, and according to Beincrypto, even profitable short positions disappeared.
- A trader known as ElonTrades claimed the crash was premeditated: “Short positions were opened right before the market collapse. It was a clear vulnerability linked to USDE and collusion with Hyperliquid.”
- Analyst Wu added that Binance’s Unified Account feature, which allowed users to use not only USDT but also yield-bearing tokens such as wBETH, BnSOL, and USDE as collateral, may have amplified the liquidation cascade.
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