Binance Says It Reimbursed $283M Within 24 Hours After USDe Depegging, Cites Display Error and Market Volatility

• Binance completed ~ $283 million in user compensation within 24 hours.

• Assets affected included USDe (Ethena synthetic dollar), BNSOL (Solana LST) and wBETH (wrapped staked Ether).

• Binance attributes the event to a display error and market-wide volatility; forced liquidations were reportedly a small share of total trading volume.

Binance reimbursed users after depegging, front-loaded with primary keyword — read the facts and next steps for affected traders. Learn more from COINOTAG.

Published: October 12, 2025 — Updated: October 12, 2025
Author/Organization: COINOTAG

How did Binance reimburse users after the October 10 depegging?

Binance reimbursed users by crediting affected accounts across Margin, Futures and Loan products, completing payments totaling approximately $283 million within 24 hours. The exchange stated that core trading systems stayed operational and characterized the incident as driven by market conditions and a display error rather than systemic token failures.

What caused the depegging of USDe, BNSOL and wBETH?

Binance reported that the sharp price moves stemmed from overall market volatility between 20:50 and 22:00 UTC on October 10, combined with a platform display error that exaggerated perceived losses. Company statements noted that forced liquidation volume processed by Binance was a relatively low proportion of total trading volume. Independent analysts described the event as a combination of liquidity fragmentation for wrapped tokens and intense market-wide selling pressure. Sources referenced: Binance official updates, analyst comments from Tiger Research and Presto, and contemporaneous market data.

Frequently Asked Questions

Did Binance’s payout fully cover user losses from the depegging?

Binance says the compensation, approximately $283 million, covered users whose positions were liquidated while holding affected assets as collateral across Margin, Futures and Loan products. The exchange also reported ongoing case reviews and potential reporting of suspicious activity to regulators where applicable.

Why did prices drop if Binance’s core systems were operational?

The exchange attributed price drops to broad market conditions and a display error. Experts noted that even with operational core systems, localized liquidity gaps and rapid market orders can trigger outsized moves in synthetic and wrapped assets, amplifying depegging events.

Key Takeaways

• Rapid compensation: Binance completed around $283 million in reimbursements within 24 hours to affected users.
• Cause identified: The firm cited a display error plus market-wide volatility; forced liquidations represented a small portion of total volume.
• Implication for users: Traders should monitor collateralized positions in synthetic and wrapped assets and consider liquidity risk when using such products.

Conclusion

The October 10 “Black Friday” market shock led to temporary depegging of USDe, BNSOL and wBETH on Binance; the platform responded by reimbursing impacted accounts and attributing the issue to market volatility and a display error. Industry analysts framed the payout as partly reputational risk management. COINOTAG will continue to monitor updates from Binance and market data, and recommends that users review collateral exposure and platform reporting when evaluating counterparty risk.

Statement on recent market volatility and the latest progress update on our user protection measures. 👉 pic.twitter.com/n5El9zvr3e

— Binance (@binance) October 12, 2025

Notable expert commentary (plain text):

“It’s obviously not common. Binance has experienced several issues in quick succession recently, and the incident on Black Friday is just one example,” said Ryan Yoon, senior analyst at Tiger Research.

“The move likely reflects a mix of goodwill and strategic optics,” Min Jung, senior analyst at quantitative trading firm Presto, told reporters, noting the payout is substantial but modest relative to the exchange’s earnings.

Sources consulted (plain text): Binance official statements; Tiger Research analyst commentary; Presto analysis; contemporaneous market data and reporting by industry outlets.