Binance, one of the largest cryptocurrency exchanges in the world, is under fire following a major market crash that resulted in the liquidation of $19 billion in positions. The incident has raised questions about the platform's reliability and the integrity of its price oracle system, and the study highlights an alarming trend: many users are losing faith in centralized exchanges.
Controversy Erupts Over Binance's Price Oracle Malfunction
The controversy erupted when a malfunction in Binance's price oracle misvalued collateral, triggering a cascade of liquidations across the market. While Binance has attributed the selloff to broader market conditions, numerous users have reported significant losses directly linked to the exchange's technical failures.
Binance's Response to User Backlash
In response to the backlash, Binance has taken steps to address the situation by distributing
- $283 million in compensation to those affected by the crash
In light of recent events surrounding Binance's price oracle malfunction, the exchange has announced the delisting of two perpetual contracts, COINM GMTUSD and DOGEUSD, effective October 28, 2025. Users can find more details in the official announcement here.
