Who Qualifies for CZ Crypto Compensation After Mass Liquidation? (Updated October 2025)

• What Triggered the $19 Billion Liquidation Across Global Exchanges?
• Who Gets Compensated by Binance?
• How Is Binance Preventing Future Liquidations?
• Industry Reactions: From Apologies to Regulatory Calls
• Historical Context: When CZ Stepped Down
• FAQ: Your Burning Questions Answered

Binance is compensating users affected by extreme market volatility on October 10, 2025, after three key tokens lost indexing, triggering forced liquidations. Eligible users held USDe, BNSOL, or WBETH as collateral between 21:36 and 22:16 UTC. The exchange is also revising its risk parameters to prevent future incidents. Meanwhile, Crypto.com’s CEO calls for regulatory scrutiny on exchanges with unusually high liquidation volumes. Here’s everything you need to know.

What Triggered the $19 Billion Liquidation Across Global Exchanges?

On October 10, 2025, a perfect storm hit the crypto market. Prices of USDe, BNSOL, and WBETH—critical collateral assets on Binance—briefly diverged from their benchmarks due to a technical glitch. This 40-minute anomaly (21:36–22:16 UTC) forced automatic liquidations, wiping out positions worth $19 billion globally. Imagine waking up to find your Leveraged trade evaporated because of a hiccup in price feeds—yeah, that kind of day.

Who Gets Compensated by Binance?

Binance confirmed on October 11 that users holding USDe, BNSOL, or WBETH as collateral during the 40-minute window will receive payouts. Why these tokens? They’re part of Binance’s Multi-Asset Mode (MAM), where price accuracy is literally the difference between solvency and a margin call. The compensation aims to offset losses from what CEO Richard Teng called “one of 2025’s most turbulent trading periods.”

How Is Binance Preventing Future Liquidations?

The exchange isn’t just writing checks—it’s rewriting its rulebook. Key changes include:

• New Price Index Calculations: Binance will now weight BNSOL, WBETH, and USDe prices based on their liquidity depth.
• USDe Floor Price: A minimum price threshold for USDe to prevent flash crashes.
• Dynamic Risk Updates: More frequent adjustments to liquidation parameters, likely hourly instead of daily.

As one BTCC analyst noted, “This is Band-Aid surgery. The real fix requires decentralized oracles, but that’s a 2026 conversation.”

Industry Reactions: From Apologies to Regulatory Calls

Binance’s Richard Teng took to X (formerly Twitter) with a rare CEO move—an actual apology. “We hear you, we’re learning, and we’ll do better,” he posted. Meanwhile, Crypto.com’s Kris Marszalek fired shots at exchanges with “suspiciously high liquidation volumes,” urging regulators to investigate. Talk about throwing shade during a crisis.

Historical Context: When CZ Stepped Down

Old-timers might recall Binance’s 2023 leadership shift when Changpeng “CZ” Zhao handed the reins to Teng. Back then, the exchange faced regulatory heat—now, it’s battling technical demons. Some things never change.

FAQ: Your Burning Questions Answered

How much compensation will affected users receive?

Binance hasn’t disclosed exact amounts but states payouts will reflect losses from the price divergence.

Can traders claim compensation if they closed positions manually during the window?

No. Only automatically liquidated positions qualify.

Will other exchanges like BTCC implement similar safeguards?

BTCC hasn’t announced changes yet, but industry-wide adjustments are likely as oracles become a hot topic.