Binance Faces Accusations of Abnormal Price Action Leading to Trader Liquidation
In a recent public controversy, cryptocurrency trader Edison Zhang, operating under the handle @edisonzz on X, has levied serious allegations against the global exchange giant Binance. Zhang claims that an abnormal and sudden price movement—commonly referred to as a 'wick'—on the SOL/USDT trading pair directly caused the forced liquidation of his leveraged long positions, resulting in the complete wipeout of his account. The incident, detailed in an open letter published on the social media platform, highlights ongoing tensions and concerns within the trading community regarding market integrity, exchange infrastructure, and the risks associated with high-leverage trading on centralized platforms. This event underscores the volatile and sometimes opaque nature of cryptocurrency markets, where rapid price fluctuations can be amplified by leverage, leading to significant financial losses. As the largest crypto exchange by volume, Binance's market mechanics and price feed reliability are under scrutiny, with traders questioning whether such 'wicks' are organic market phenomena or potential indicators of systemic issues like liquidity gaps or even manipulation. The case brings to the forefront the critical debate around risk management, the transparency of exchange order books, and the safeguards (or lack thereof) for retail traders engaging in margin and futures products. While Binance has not issued a public statement specific to this incident at the time of this report, the broader context includes increasing regulatory focus on exchange practices and consumer protection in the digital asset space. For bullish practitioners, such events serve as a stark reminder of the technical and counterparty risks that exist alongside the sector's growth potential, emphasizing the need for robust personal risk management strategies when participating in leveraged markets.
Trader Accuses Binance of Causing Liquidation Through Abnormal Price Wick
Cryptocurrency trader Edison Zhang has publicly accused Binance of triggering a market event that liquidated his Leveraged positions, resulting in significant losses. In an open letter shared on X (formerly Twitter), Zhang, known as @edisonzz, detailed how an unusual price movement—referred to as a 'wick'—on the SOL/USDT pair led to the automatic closure of his long positions. "Everything had been wiped out. My account was at zero. Ten years of heart and soul vanished into thin air," Zhang wrote, attaching trade screenshots as evidence.
The disputed price wick occurred on October 11, with SOL briefly dipping below Zhang's liquidation threshold of $145 to $141. A wick, represented by the thin vertical lines on candlestick charts, indicates the highest and lowest prices reached during a trading period, even if the asset did not close at those levels. Upper wicks signal selling pressure, while lower wicks reflect buying interest. Binance has yet to publicly respond to the allegations.
Justin Sun Denies Ex-Girlfriend's Fraud Allegations, Reaffirms TRON's Compliance
Justin Sun, founder of TRON, has publicly refuted fraud allegations made by his ex-girlfriend Zeng Ying, labeling them as "unequivocally false." The accusations include market manipulation, systemic exploitation, and even potential violent crimes. SUN emphasized TRON's full cooperation with global law enforcement to combat financial crimes.
Zeng claims to possess evidence of illicit trading activity on Binance and internal collusion, which she alleges harmed retail investors. Sun's response on social media reiterated TRON's commitment to legal compliance and user asset protection. The controversy resurfaces scrutiny over Sun's wealth accumulation since TRX's 2017 launch.
Solana Price Prediction: V-Shaped Rebound Eyes New Highs After Capitulation
Solana's violent sell-off last week culminated in a textbook capitulation event, liquidating weak hands and resetting leverage across crypto markets. The tenth-largest liquidation on record compressed SOL's decline to cycle lows in a single move—a hallmark of exhaustion.
Historical patterns suggest such extremes often precede V-shaped recoveries. With forced selling absorbed and open interest purged, SOL has retraced its November breakout entirely. This technical reset coincides with fading downside momentum as buyers re-emerge.
The altcoin now tests a critical inflection point. Should demand follow through, Solana's path toward fresh all-time highs could accelerate as broader market conditions stabilize. Market structure echoes prior cycle bottoms where panic transitions abruptly to recovery.
