Key Takeaways
- OKX CEO Star Xu says the Oct. 10, 2025 flash crash caused more serious, longer-term damage than most people realize.
- The 10/10 crash wiped out tens of billions in leveraged positions, with critics blaming Binance pricing issues and collateral depegging for accelerating liquidations.
- The public fallout is fueling fresh “exchange war” talk, as major platforms clash over accountability, market structure, and user protection.
The Oct. 10, 2025, flash crash may be months old, but the blame game is still very much alive.
What started as a brutal liquidation cascade has now turned into a public feud between two of crypto’s biggest power centers—OKX and Binance.
OKX founder and CEO Star Xu is increasingly using X to call out what he sees as a deeper rot inside centralized exchange culture.
And while Xu doesn’t always name names, the target has become hard to miss.
OKX founder and CEO Star Xu made pointed comments on X, indirectly accusing Binance and its former CEO Changpeng Zhao (CZ) of prioritizing short-term gains over industry health.
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Star Xu Takes Aim at Binance’s Role in the Crash
Xu has spent weeks revisiting the October meltdown, and his tone has only sharpened.
In his latest post , written in response to commentary around Cathie Wood’s take on the crash, Xu argued that the damage from Oct. 10 has been widely underestimated—calling it “real and lasting.”
He aimed his criticism at what he described as an “industry-leading company,” accusing it of putting short-term profits ahead of the health of the market.
Xu also criticized competitors for pushing what he called “Ponzi-like schemes,” amplifying get-rich-quick narratives, and propping up low-quality token ecosystems through marketing rather than fundamentals.
More pointedly, he alleged that instead of addressing failures through transparency, some exchanges rely on “aggressive narrative control” and coordinated influencer campaigns to drown out criticism.
The underlying message was clear: this wasn’t just a bad day in the markets. In Xu’s view, it was a credibility hit that set the entire industry back.
Cathie Wood’s “Glitch” Take Adds Fuel to the Fire
The OKX CEO’s remarks came after Cathie Wood resurfaced the Oct. 10 crash in a Fox News interview clip shared on X.
Wood described the event as being tied to a Binance software glitch, claiming it triggered a wave of forced deleveraging that helped wipe out roughly $28 billion across the market.
She also suggested the crash left lingering aftershocks that slowed the broader recovery into early 2026.
Wood framed Bitcoin as potentially needing time to base around $80,000 to $90,000 before continuing higher, even as she reiterated that institutional adoption remained intact.
Xu didn’t dispute the macro story. He focused on the execution failure—and the fact that, months later, the industry is still dealing with the fallout.
What Happened on Oct. 10 and Why It Still Matters
The Oct. 10 crash became the largest liquidation event in crypto history, impacting more than 1.6 million traders worldwide.
A major trigger was President Donald Trump’s tariff threat, which sparked a risk-off wave across global markets.
Crypto, still heavily leveraged, absorbed the shock in the worst way possible.
Bitcoin slid hard, altcoins cratered, and some tokens dropped as much as 80% in the chaos.
But the real controversy wasn’t the initial sell-off. It was what happened next.
Multiple reports and analysts argued that Binance’s systems amplified the damage, especially after certain assets appeared to depeg sharply on the exchange.
Tokens like USDe, wBETH, and BNSOL saw extreme price dislocations (most notably USDe), which briefly traded around $0.65 on Binance while holding closer to $1 elsewhere.
Those pricing anomalies mattered because they affected collateral valuations.
Once collateral got marked down, it triggered liquidations across futures, margin positions, and loan products—creating a feedback loop that pulled the market lower.
Analysts also flagged unusual activity ahead of the crash, including massive stablecoin inflows to Binance hot wallets and the absence of major market makers in the most chaotic books, raising even more questions about liquidity conditions at the worst possible time.
Binance later moved up a planned oracle update and issued compensation to affected users, reportedly totaling around $283 million.
Even so, estimates of total liquidations ranged widely, with some placing the wipeout closer to $19 billion, while others put it nearer $30 billion.
Binance Pushes Back as Exchange Rivalries Heat Up
Binance has defended its handling of the event, blaming broader market conditions and insisting its core systems remained operational.
Co-founder Yi He apologized for disruptions tied to a surge in activity and said the exchange would compensate impacted users.
Meanwhile, CZ dismissed criticism as “FUD” in response to renewed accusations and misinterpretations around his messaging.
Still, the damage wasn’t just financial—it was reputational.
The October crash revived long-running concerns about centralized exchanges:
- Opaque risk controls.
- Collateral rules that can change fast under stress.
- And the reality that when systems break, retail traders usually pay first.
Xu’s public campaign also signals something bigger: the largest exchanges are no longer quietly co-existing.
They’re increasingly competing on narrative, credibility, and who gets blamed when the market breaks.
And after Oct. 10, that fight isn’t going away anytime soon.
