CZ Fires Back at OKX CEO Over October 10 Crypto Market Meltdown
Binance founder Changpeng Zhao just threw a punch in the ongoing blame game for last year's brutal crypto crash. His target? OKX's top executive.
The Finger-Pointing Intensifies
Forget quiet diplomacy. CZ's public rebuttal cuts straight through the usual corporate spin, challenging the narrative that any single exchange triggered the cascade. It's a rare, gloves-off moment between titans—the kind that moves markets and shifts sentiment overnight.
Anatomy of a Flash Crash
October 10 wasn't just a bad day; it was a systemic shudder. Liquidations ripped through leveraged positions, wiping billions in minutes. Now, the post-mortem has turned into a high-stakes debate over causality and culpability.
Why This Clash Matters
This isn't just executive sparring. When CZ and a rival CEO publicly disagree on root causes, it exposes the fragile, interconnected plumbing of crypto markets. It raises the uncomfortable question: is the entire ecosystem just one oversized margin call away from the next cliff?
The industry loves its 'decentralized' mantra, but when trouble hits, everyone looks for a central figure to blame—a delicious irony for traditional finance skeptics watching from the sidelines. The truth likely lies in a perfect storm of over-leverage and clustered liquidations, not a single villain. But in crypto's theater of volatility, narrative often trumps nuance. The only certainty? Prepare for more turbulence.
The main argument is about a token called USDe. OKX says Binance treated USDe like a SAFE stablecoin, even though it was actually a high-risk investment. This led to a "leverage loop." In simple terms, users borrowed money to buy USDe, then used that USDe to borrow even more. When the digital arena dipped, this whole "house of cards" fell apart. This caused $19 billion in losses during the the tenth month 10 crypto price collapse, leaving many traders with nothing.
OKX CEO Blames Binance Yield Campaigns for October 10 Crypto price collapse
Star Xu did not hold back in his critique. He explained that the October 10 crypto price collapse happened because the exchange gave USDe "special treatment." By letting users use it as collateral for big loans, The top exchange created a massive bubble. Xu believes that "short-term yield games" destroyed the trust that the industry has worked years to build. He argues that even a small market shock was enough to start the the tenth month 10 Digital assets price collapse because the system was already too weak.
The Binance Defense: Why the Market Really Fell
The top exchange has a very different story. They released a report showing that the October 10 Digital assets price collapse was a "macro shock." This means it was caused by big world events, not just one exchange. Their main points include:
A surprise 100% tariff announcement from the U.S. sent all markets including stocks into a panic.
The ethereum network got too crowded. This made it impossible for "market makers" to move money fast enough to stop the price drop.
Order books "went thin" everywhere. This means there weren't enough buyers to stop the falling prices on any exchange.
CZ also pointed out that most of the liquidations happened before Binance had any technical glitches. He believes the October 10 Digital assets price collapse was a natural, though painful, part of the market clearing out bad debt.
Expert Analysis: What Happens Next?
The industry is now entering a new phase. Most experts believe the October 10 Digital assets price collapse has forced exchanges to be more honest about risk. We will likely see fewer "get-rich-quick" schemes and more focus on "Proof of Risk." While the fight between OKX and Binance continues, the market is slowly recovering. Many see this crash as a "test" that the crypto world survived, even if it was a very expensive lesson.
