Ethena USDe (USDe)

These days many people have probably seen the news and drama about CZ and Binance flooding the feeds, so I want to summarize it in an easy-to-understand way.
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The main source of the current FUD wave comes from an event referred to in the industry as
📅 “10/10 Crash” on October 10, 2025
That day the crypto market plummeted sharply within a few hours, many positions were liquidated (automatic loss‑closing), totaling tens of billions of dollars; some coins fell more than 80‑90%. Many compare it to the biggest event since the FTX collapse, but the number of liquidations exceeded those during the Luna and FTX crashes.
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Those accusing Binance say
👉 They promoted high‑yield products that were too risky
👉 People kept cycling money through multiple rounds, creating fragility in the system
👉 When prices broke key levels, a domino effect wiped out positions across the market and impacted other exchanges
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In the case of the high‑yield product promotion, the CEO of OKX said that USDE, Ethena’s stablecoin, was promoted for high returns on Binance, attracting inflows, and this was one of the reasons the market collapsed due to a de‑peg at that time.
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However, this allegation is contested and no definitive conclusion has been reached yet.
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Now many believe Binance contributed to the system failure
But CZ responded that
• The 10/10 event was caused by external factors such as U.S. economic and political news
• There was no market manipulation or intentional crisis creation
• Binance compensated users beyond the standards of many platforms
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Besides the 10/10 Crash, there are other rumors such as
📉 Binance or CZ secretly dumping large coins to push prices down
📜 Old lawsuits being revived, involving customer data and past accusations
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CZ denied all of them, stating that Binance has been continuously monitored by regulators, and most negative news is attacks from competitors.
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The community is clearly split into two camps: some who lost real money, are angry and distrustful; others view it as a political game within crypto because Binance, being the biggest, bears the brunt.
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FUD is surging now because CZ’s partner Justin Sun, the founder of the Tron chain, was exposed by someone claiming to be an ex‑girlfriend, accusing him of numerous illegal activities, and inviting the U.S. SEC to request information.
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The crypto market feels both funny and painful right now; there’s entertainment to follow, but the market keeps falling without pause, lol.

🔥Quick summary of the OKX CEO vs Binance drama: Who is responsible for the flash crash on 10/10/2025 that caused the market to evaporate more than $19 billion in leveraged positions.

‼️Notably, after this collapse the market has not fully recovered to date, and according to some viewpoints it could have continued to grow.

🔴 Accusation from Star Xu (OKX)
Star Xu says this is not an accident, but the result of irresponsible marketing behavior by the “big players”, directly pointing at Binance:

❗️ Binance heavily promotes USDe (Ethena) – a profit‑generating token that is not a traditional stablecoin, carrying speculative‑fund‑type risk.
❗️ Allows (borrow – swap – circular collateral) to push APY up to 12–70%, encouraging users to swap USDT/USDC for USDe without fully warning of the risks.
📊 When the market experiences strong volatility (related to Trump tax policy + macro factors), USDe depegs, causing cascading liquidations across many exchanges, including OKX customers.

👉 Star Xu emphasizes: Binance is the largest exchange » has the biggest systemic responsibility, and believes the damage level is more severe and long‑term for the industry than even FTX.

🟢 Response from Binance & the community
Binance and CZ deny the accusations, stating:
✏️ The flash crash was caused by macro‑level turmoil, not the fault of any single exchange.

❗️ Some major figures (such as the CEO of Wintermute, partner Dragonfly…) think:
- Star Xu is over‑blaming, exaggerating the role of the USDe campaign.

⚠️ The drama is still spreading on social media:
- CZ unfollowed the critics
💡 The community is fiercely debating the systemic responsibility of top‑tier exchanges