Binance Post-Mortem: IOTX Price Glitch Explained — $283M Paid in Compensation After Oct 10 “Black Swan” Event

Binance published a detailed post-mortem of the “Black Swan” platform performance incident, confirming that from October 10, 21:18 UTC certain platform modules experienced brief technical failures amid acute market volatility. The report notes targeted price dislocation in specific assets and that Binance completed user compensation within 24 hours.

On sequencing, published data indicate the market bottomed between 21:20–21:21 UTC and the most severe dislocation manifested after 21:36 UTC, so the initial extreme price drop preceded the platform dislocation. Binance reports it absorbed approximately $283 million in losses for passively liquidated users across two compensation batches and directs users to official announcements for verification.

The post-mortem attributes abrupt price moves to matching of long-standing historic orders in thin liquidity, and a recent minimum-price-precision adjustment that produced a temporary “zero price” display artifact. Binance will implement UI optimizations to rectify abnormal displays; API endpoints were not impacted.