Binance Confirms $283M User Payout After Pegged Assets Unravel In Brutal Liquidation Wave

Samantha Luan

Cryptocurrency

Forex

Economic

Summary:

Binance has revealed a $283 million payout after massive liquidations and cascading losses rattled crypto markets, exposing deep volatility and testing investor confidence across exchanges.

Binance Concludes Market Volatility Review, Pays out $283M in User Compensation

Crypto exchange Binance announced on Oct. 12 that it had completed a full assessment of the extreme market volatility that shook the cryptocurrency sector between 20:50 and 22:00 UTC on Oct. 10, when both institutional and retail traders engaged in heavy sell-offs.The firm stated that the turbulence was driven primarily by global macroeconomic shocks, not internal system failures, and that its trading infrastructure remained fully functional throughout the event. The market experienced a sharp collective decline, sending asset prices plunging within minutes and triggering widespread liquidations across exchanges.

“Binance has conducted a comprehensive review and can now confirm that during the event, the core futures and spot matching engines and API trading remained operational,” the crypto exchange detailed, adding:According to data, the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions.The company said the review was part of its ongoing effort to ensure transparency and strengthen user trust amid speculation that Binance’s systems had contributed to the crash.

“At the same time, the review confirmed that following 2025-10-10 21:18 (UTC), some platform modules briefly experienced technical glitches, and certain assets had de-pegging issues due to sharp market fluctuations,” Binance continued. The affected tokens included Binance Earn products linked to USDE, BNSOL, and WBETH, which temporarily lost their peg values after the broader market downturn.

The exchange explained that these de-pegging events occurred after the sharpest market declines and therefore were not the cause of the sell-off. “We have completed compensation for users affected by the depegging issues within 24 hours after the event,” Binance noted. “Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses,” the company detailed, confirming:

Compensation has been distributed in two batches, totaling approximately 283 million USD.

The exchange also cited anomalies in certain spot pairs caused by long-standing limit orders and temporary user interface issues. Binance said it will enhance its system display accuracy and strengthen risk controls, while continuing to update the community on ongoing compensation reviews and platform improvements.

FAQ 🧭

● Why did Binance pay out $283 million to users after the market crash?Binance compensated users affected by de-pegging issues and liquidation losses that occurred during the intense crypto market volatility on Oct. 10, 2025.

● Was Binance responsible for the massive crypto sell-off on Oct. 10?Binance claimed that the sell-off was driven by global macroeconomic shocks rather than any internal system failures or exchange malfunctions.

● Which assets were affected by the de-pegging incidents on Binance?The de-pegging issues impacted Binance Earn products linked to USDE, BNSOL, and WBETH, which temporarily lost their peg values after the sharp market decline.

● How is Binance improving its systems after the volatility review?Binance stated that it is enhancing system display accuracy, strengthening risk controls, and maintaining transparency to rebuild investor trust following the payout and review.

Source: CoinGecko

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Gerik

Economic

Trump Declares Peace in the Middle East

U.S. President Donald Trump’s recent declaration that the war in the Middle East is over, made during a speech at Israel’s Knesset, marked a dramatic shift in diplomatic rhetoric. Trump called it the "end of the long and painful nightmare" for both Israelis and Palestinians, and unequivocally confirmed to reporters that the conflict was over. This statement follows a peace agreement brokered by the U.S., which has been hailed as a breakthrough in the region's long-standing tensions.

Though Trump’s comments sparked optimism, the broader geopolitical context remains complex. His remarks are seen as part of an ongoing diplomatic process, where the road to a lasting peace agreement still involves significant challenges, especially regarding the disarmament of militant groups like Hamas.

Markets Rebound as Trade Fears Ease

Trump’s trade rhetoric also experienced a shift, providing relief to global markets. After his Friday announcement of a 100% tariff on Chinese goods, which triggered a sharp sell-off, the president reassured investors over the weekend with a softer tone, stating “it will all be fine” with China. This change in stance helped major U.S. stock indexes claw back some of their losses from the previous week. Technology stocks, in particular, led the rebound, reflecting investor optimism over the easing of trade tensions.

JPMorgan Chase’s announcement that it would invest $10 billion in critical sectors such as defense, AI, energy technology, and advanced manufacturing further fueled market optimism. The announcement was viewed as a sign of confidence in the future of industries central to U.S. national security, helping to stabilize market sentiment.

Broadcom and OpenAI Form Strategic Partnership

A major development in the tech sector saw Broadcom’s shares surge nearly 10% after the company announced a new partnership with OpenAI. Together, they plan to develop custom chips for AI applications, marking a significant step in the deployment of frontier technologies. This collaboration is expected to start late next year, contributing to the rapid growth of the AI sector and the broader technology market.

Despite the excitement surrounding the partnership, questions remain about how this will affect Nvidia, another key player in AI chip manufacturing, which has been closely tied to OpenAI’s operations through its reliance on Nvidia’s hardware for its models.

European Stocks and Sectors Less Affected by U.S.-China Tensions

While the U.S. stock market showed signs of recovery, European stocks have been less impacted by the latest trade conflict, as Europe is largely excluded from the scope of Trump’s new tariffs on China. The Stoxx 600 index rose 0.44%, buoyed by strong performances from mining stocks, which benefited from a weaker U.S. dollar and a stabilization of global commodities prices.

UBS analysts highlighted several European sectors, such as utilities and pharmaceuticals, that are less vulnerable to the ongoing trade war and potential impacts of a weakening dollar. These sectors have been shielded from the direct effects of the tariff conflict, making them attractive to investors seeking stability in uncertain times.

U.S. Intervention in Argentina to Stabilize Currency

In a related geopolitical and economic development, the U.S. has stepped in to support Argentina with a $20 billion currency swap line, announced by Treasury Secretary Scott Bessent. This extraordinary intervention aims to stabilize Argentina’s currency, the peso, amid political and economic instability ahead of key midterm elections. This marks the first U.S. intervention of this nature since the 1995 rescue of Mexico, with the U.S. stepping in to prevent a broader economic crisis in Argentina.

The move reflects the growing geopolitical influence of the U.S. and the continued importance of global financial stability in the face of challenges in emerging markets. The situation in Argentina highlights the interconnectedness of global economies and the impact of currency volatility on international relations.

While Trump’s declaration of peace in the Middle East and his softening of trade rhetoric provided temporary relief to global markets, challenges remain. The success of his diplomatic initiatives in the region is uncertain, and further trade tensions could still undermine market stability. However, the latest market rally, driven by optimism in tech investments and geopolitical easing, suggests that investors are cautiously hopeful. As global financial dynamics continue to shift, markets will closely monitor developments in U.S.–China relations, Middle Eastern peace efforts, and key economic interventions like those in Argentina.

Source: CNBC

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Samantha Luan

Economic

Forex

Stocks

While the latest tit-for-tat showdown between US President Donald Trump and Chinese leader Xi Jinping keeps global markets on edge, investors in India are set to welcome another large listing — the local unit of South Korea’s LG Electronics makes its Mumbai trading debut today. Shares of Jaguar Land Rover owner Tata Motors will also be in focus ahead of the record date Tuesday for the demerger of the firm’s commercial vehicles business.

Investors eye bumper gains in LG Electronics IPO

LG’s India unit could see its stock rally about 30%, based on the premium at which its shares are trading in unofficial markets, according to data from ipowatch.in. Such potential returns for an IPO worth over $1 billion would place it among major listings like Paytm and Eternal, both of which were investor favorites. A blockbuster debut by the multinational firm could add more fuel to October’s record-breaking listings run. Lenskart and Billionbrains Garage Ventures are also planning to join the frenzy, with plans to raise a combined $1.7 billion in first-time share sales later this month.

IPO rush puts equity markets to the test

On the flip side, some investors are cautioning against the potential negative impact the flood of IPOs can have on an already struggling stock market. Indian firms are expected to raise a record more than $5 billion this month, making the country one of the busiest markets for new share sales in the world. The worry is that a rotation of funds into IPOs will leave investors with less cash to buy existing shares, putting pressure on the broader market. Indian stocks are already trailing most Asian peers this year due to almost $17 billion of foreign outflows amid worries over slowing earnings growth, lofty valuations, and steep U.S. tariffs.

Will the low-beta EM please stand up?

But some analysts say India stands to benefit from the renewed Trump—Xi brinkmanship that has rekindled memories of past market turmoil and brought volatility roaring back to life. Morgan Stanley has argued all year that global volatility is good for Indian stocks, which have largely decoupled from the AI-driven global rally and maintain a relatively low beta versus peers.

If India’s low volatility does attract some global funds, it might help the market avoid an unwanted milestone. The MSCI’s India gauge is set for its worst year relative to its emerging-market gauge since 1995. For context, that’s three decades spanning the country’s IT boom, Narendra Modi’s political ascent, and Donald Trump’s two presidencies.

Source: Bloomberg Europe

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Gerik

Economic

Cryptocurrency

Crypto Market Volatility Spikes After Record Liquidation

The cryptocurrency market is facing intense volatility following the largest liquidation event in its history on Friday, when over $19 billion in leveraged positions were wiped out. This dramatic selloff was triggered by President Donald Trump’s announcement of a 100% tariff on Chinese imports, along with threatened export controls on critical software, which sparked panic selling across global markets.

Bitcoin saw its price plunge by more than 14%, falling as low as $104,782.88 from a Friday high of $122,574.46, before recovering slightly to $115,718.13. Ether, the second-largest cryptocurrency, experienced a similar downturn, dropping 12.2% to a low of $3,436.29 before clawing back to $4,254.

Altcoins, including HYPE, DOGE, and AVAX, endured even steeper declines—HYPE lost 54%, DOGE fell 62%, and AVAX plummeted 70%. However, these tokens have since posted more modest losses, suggesting a broader recovery, though they remain far below their recent highs.

Hedging Activity Surges Amid Ongoing Trade Tensions

In response to the sharp declines, crypto traders have aggressively sought to hedge against further downturns by purchasing "put" options, which give them the right to sell Bitcoin and Ether at predetermined strike prices. According to data from Derive.xyz, a crypto options platform, there was a notable spike in put buying, particularly for Bitcoin options at strike prices of $115,000 and $95,000 with expiry dates in late October. Ether options were also actively traded, with a focus on the $4,000 and $3,600 strike prices for October expirations, indicating a growing bearish sentiment for the short term.

This surge in hedging activity suggests that traders are positioning themselves for further declines, despite a brief recovery triggered by Trump’s softer tone on China over the weekend. Trump’s comments, stating that "it will all be fine" and that the U.S. does not want to harm China, helped ease some of the immediate panic, but the overall sentiment remains cautious.

A Market Reset After Excessive Leverage

The recent crash has also been viewed as a "cleaning out" of excessive leverage in the market, according to analysts. Nic Puckrin, co-founder of The Coin Bureau, noted that the liquidation event has reset the risk in the market, which could lead to a healthier crypto ecosystem moving forward. Despite this, Bitcoin now faces significant resistance in its attempts to break past key price levels and achieve a new all-time high this year.

Onchain analyst Willy Woo suggested that while Bitcoin investor flows have remained strong throughout the volatility, capital is shifting from altcoins like Ether and Solana back into Bitcoin, positioning it as the "blue-chip" asset in the crypto space. This shift in capital, he noted, reflects the relative stability and institutional interest in Bitcoin, compared to the more speculative nature of altcoins.

Short-Term Caution, Long-Term Uncertainty

While the immediate rebound in Bitcoin and Ether suggests a temporary relief, the outlook remains uncertain. As markets continue to grapple with the fallout from geopolitical tensions, traders are wary of further sell-offs, especially if trade issues between the U.S. and China escalate. The heavy hedging in the options market underscores the growing fear of another potential freefall, making it clear that volatility will continue to define the crypto landscape for the near future.

Crypto analysts and investors alike will be closely monitoring the broader economic and political environment, particularly the U.S.–China trade relationship, to assess whether this week’s recovery is sustainable or if further corrections are on the horizon.

Source: Reuters

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Samantha Luan

Economic

Commodity

Forex

Silver prices touched an all-time high near US$53 (RM224) an ounce, as a historic short squeeze in London added momentum to a rally that’s been fuelled by surging demand for safe-haven assets.Spot prices rose as much as 1% to US$52.8983 an ounce in London, surpassing a peak set in January 1980 on a now-defunct contract overseen by the Chicago Board of Trade — when the billionaire Hunt brothers attempted to corner the market. Gold also climbed to another record high, building on eight straight weeks of gains.

Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York. That’s prompting some traders to book cargo slots on transatlantic flights for silver bars — an expensive mode of transport typically reserved for gold — to profit off higher prices in London. The premium was at about US$1.15 an ounce in early trading on Tuesday — down from a spread of US$3 last week.

Silver lease rates — which represent the annualised cost of borrowing metal in the London market — have been persistently high this year, but surged to more than 30% on a one-month basis on Friday. That’s creating eye-watering costs for those looking to roll over short positions. A jump in demand from India in recent weeks has drawn down the supply of available bars to trade in London, following a rush to ship metal to New York earlier this year after worries that the metal could be hit with US tariffs sparked large dislocations between the two trading hubs.

While precious metals were officially exempt from levies in April, traders remain on edge ahead of the conclusion of the US administration’s so-called Section 232 probe into critical minerals — which includes silver, as well as platinum and palladium. The investigation has revived fears the metals could be swept up in new tariffs, exacerbating market tightness.

The silver market “is less liquid and roughly nine times smaller than gold’s, amplifying price moves,” Goldman Sachs Group Inc analysts wrote in a note. “Without a central bank bid to anchor silver prices, even a temporary pullback in investment flows could trigger a disproportionate correction, as it would also unwind the London tightness that drove much of the recent rally.”

The four main precious metals have surged between 56% and 81% this year, in a rally that’s dominated commodity markets. Gold’s advance has been underpinned by central-bank buying, rising holdings in exchange-traded funds, and rate cuts by the Federal Reserve. Demand for havens has also been aided by recurrent US-China trade tensions, threats to the Fed’s independence, and a US government shutdown.

“There seems to be no good reason to fight the trends in both gold and silver,” said Shyam Devani, an investor in Singapore. “It has become clearer the trends have accelerated, and are likely to continue because the underlying issues of weak governments, poor budgetary positions, confusion on monetary policies all conspire to push up both gold and silver higher.”On Monday analysts at Bank of America Corp hiked their end-of-2026 price target for silver from around US$44 an ounce to US$65, citing persistent market deficits, elevated fiscal gaps and lower interest rates.

Investors were also weighing the outlook for the Fed’s monetary easing path ahead of the central bank’s next interest-rate decision later this month. Philadelphia’s Fed Bank President Anna Paulson on Monday signalled she favours two more quarter-point cuts this year as policy should look through the impact of tariffs in consumer price increases. Lower borrowing costs then to benefit precious metals, which don’t pay interest.Spot gold was up 0.7% at US$4,140.82 an ounce at 10.04am in Singapore, after climbing 2.3% on Monday. The Bloomberg Dollar Spot Index was flat, after gaining about 1% last week. Silver was up 0.9%, while platinum and palladium jumped.

Source: Theedgemarkets

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Political

Trump Takes Victory Lap After Gaza Peace Deal

During a one-day diplomatic tour of Israel and Egypt, President Donald Trump basked in the praise of fellow leaders, celebrating the success of U.S.-led efforts to broker a ceasefire between Israel and Hamas in Gaza. The peace agreement, which included the release of hostages and a halt to Israel’s military campaign against Hamas, marked a rare diplomatic achievement amid decades of failed negotiations.

Trump’s speech in the resort city of Sharm El-Sheikh was a campaign-style victory lap, where he joked about tensions with some of the leaders present and referred to the Gaza deal as a historic moment. “It took 3,000 years to reach this agreement,” he said, reflecting on the challenges of Middle East peace.

Despite the triumph, Trump faces a more difficult road ahead as he looks to implement a broader peace agenda. While he sought to downplay the obstacles, his remarks, including a suggestion that peace with Iran would be “easy,” were met with skepticism by experts familiar with the region’s complexities.

The Challenges of Broader Peace in the Middle East

Trump’s ultimate goal of achieving a wider peace deal in the Middle East, particularly with Iran, remains highly ambitious. Despite his self-assurance, experts noted the significant hurdles that lay ahead. Jonathan Panikoff from the Atlantic Council highlighted that the difficulties in securing a broader peace, especially with Iran a country involved in ongoing hostilities with Israel should not be underestimated.

Trump’s past successes, such as the Abraham Accords, which normalized relations between Israel and several Arab countries, remain important achievements, but expanding these accords further into the Arab world especially to Saudi Arabia will face significant geopolitical obstacles. Turkey’s President Erdogan, for instance, threatened to boycott the summit in Egypt due to his opposition to Israeli Prime Minister Netanyahu, illustrating the fractured alliances and deep tensions that still divide regional powers.

Diplomatic Strain with Erdogan and Future Challenges

Trump also found himself navigating delicate relationships, particularly with Turkish President Recep Tayyip Erdogan. While praising Erdogan’s strong leadership, Trump acknowledged the complexities of U.S.-Turkey relations, especially within the context of NATO. Erdogan’s refusal to attend the summit, citing Netanyahu’s participation, highlighted the lasting divisions in the region.

The diplomatic dance with Erdogan, while positioned as a key success, signals the broader difficulty of securing lasting peace agreements in the region. The challenges of reconciling entrenched political positions, such as those between Israel and Turkey, are far from resolved, even as Trump attempts to present himself as the peacemaker.

The Road Ahead: From Ceasefire to Implementation

The agreement to halt hostilities between Israel and Hamas may have been a watershed moment, but the path forward remains unclear. Trump’s 20-point peace plan for Gaza includes difficult measures such as disarming Hamas, a task that experts and critics view as extremely difficult, given Hamas’ entrenched position in Gaza.

Trump himself cast doubt on certain aspects of the peace plan, particularly his proposal to have former British Prime Minister Tony Blair serve on a “Board of Peace,” indicating that even within his own strategy, some details remain unsettled.

Facing the Next Challenge: Ukraine and Russia

Looking ahead, Trump’s diplomatic focus will soon shift to Ukraine, as President Zelensky is scheduled to visit Washington. Trump’s promise to swiftly end the war in Ukraine aligns with his broader foreign policy vision, but as with the Middle East, the reality of negotiating peace in an ongoing conflict presents significant challenges.

As Brian Katulis of the Middle East Institute pointed out, peace in both Gaza and Ukraine requires more than just high-profile statements it demands serious, sustained efforts to implement agreements and ensure their success. Trump’s challenge will be turning his diplomatic wins into lasting peace, a task that requires not only the ability to broker agreements but also to manage their complexities and contradictions on the ground.

Trump’s Middle East diplomacy has garnered significant attention, with his handling of the Gaza conflict being seen as a notable achievement. However, the broader goals of regional peace, including negotiations with Iran and the delicate balancing of relationships with key figures like Erdogan, remain fraught with challenges. Trump’s ability to deliver on these ambitious plans will depend on navigating the complexities of Middle Eastern geopolitics and ensuring that any agreements reached are implemented effectively no easy feat in such a volatile region.

Source: Bloomberg

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Samantha Luan

Economic

Forex

Political

U.S. President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October as the two sides try to de-escalate tensions over tariff threats and export controls, U.S. Treasury Secretary Scott Bessent said on Monday.The latest rupture followed China's announcement on Thursday that it would dramatically expand its rare earths export controls. That drew a sharp countermeasure from Trump on Friday that sent markets and relations between the world's two largest economies into a spiral.

Bessent said there were substantial communications between the two sides over the weekend and more meetings were expected."We have substantially de-escalated," Bessent said in an interview with Fox Business Network."President Trump said that the tariffs would not go into effect until November 1. He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on."Trump and Xi had planned to meet during the summit of the Asia-Pacific Economic Cooperation forum hosted by South Korea in late October.

China's Commerce Ministry on Tuesday said it had informed the U.S. in advance it planned to tighten its rare earth controls, and confirmed that the two sides remain in communication, adding that a working-level meeting took place on Monday.But the statement from a Commerce Ministry spokesperson warned "the U.S. cannot ask for talks while simultaneously threatening new restrictive measures."Asian stocks made a tentative rebound in early trade on Tuesday, after Wall Street's main indexes ended as much as 2.2% higher on Monday, following Bessent's signal that trade negotiations between the two superpowers remain on track.

Trump's threat on Friday sparked a big sell-off at a time when investors and top policymakers were already growing anxious about a frothy stock market fueled by an investment boom in artificial intelligence that some officials fear could hurt future employment.Bessent said there would be U.S.-China staff-level meetings this week in Washington on the sidelines of the World Bank and International Monetary Fund annual gatherings."The 100% tariff does not have to happen," Bessent said. "The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we'll see where it goes."

US PUSHBACK AGGRESSIVE

Still, Bessent called the China move provocative and said the U.S. pushed back aggressively.The United States has been in contact with allies and expects support from the Europeans, India and democracies in Asia, he said."China is a command-and-control economy. They are neither going to command nor control us," Bessent said.China blamed the United States for the rising trade tensions on Sunday and called Trump's latest threatened tariffs of 100% on Chinese goods hypocritical. It defended its curbs on exports of rare earth elements and equipment. China dominates the market for such elements, which are essential to tech manufacturing.

Under China's new regulations, foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export license if the final product contains or is made with Chinese equipment or material. This applies even if the transaction includes no Chinese companies.The United States would reject licensing requirements from China, Bessent said in the interview on "Mornings with Maria."