Part 8/15:
On-chain data reveals that the crash began on Binance, with certain tokens like USDE (a stablecoin), WBET (a wrapped Ethereum derivative), and BN Soul (a Salana derivative) collapsing over 80%. These tokens were flagged as vulnerable because Binance had announced upcoming updates—scheduled for October 14th—that would affect their pricing mechanisms. The crash within this window wasn't coincidental; it was an attack on weak points in the system designed to trigger liquidations en masse.
As liquidations surged—totaling nearly $19.3 billion—the market experienced a historic cascade. Over 1.6 million traders were liquidated, with longs outnumbering shorts 7-to-1. This was a mechanical flush driven by algorithms—no panic involved—setting the stage for a reset.