Several tokens experienced a sudden crash on Binance. The causes could be related to a glitch in a market making bot or changes to the rules on derivatives.
Summary
Bot error or misconfigured automated strategy for tokens on Binance?
This morning, shortly after 11:00 UTC, some tokens on Binance experienced a sudden and synchronized drop, without apparent reasons. The price of Act I, the Prophecy (ACT) fell by 50%, followed by DeXe (DEXE) with -30% and dForce (DF) with about -20%.
Also other minor tokens such as:
- HIPPO
- BANANA31
- TST
- LUMIA
have shown strong declines within a few minutes.
Many observers suspect a malfunction of a trading bot, which would have triggered massive uncontrolled sales, generating a market imbalance between derivatives and spot.
The founder of DWF Labs, Andrei Grachev, commented on X:
“Has someone been hacked or banned? Otherwise, I can’t explain the dump on such disconnected assets.”
The possible trigger: an update from Binance
At 10:30 UTC, Binance announced changes to the leverage and margin requirements for perpetual contracts on several pairs, including ACT/USDT. The announcement specified that the new rules would also apply to existing positions.
According to some analysts, this could have:
- Activate automatic adjustments in arbitrage and market making bots
- Trigger liquidations on cross-margin positions
- Spread rapidly to the spot market as well, creating a domino effect
A pseudonymous user on X, Game, explained:
“The update hit the perpetual, but it also sent the spot into a panic. Those who had connected positions began to close them quickly, amplifying the crash.”
The phenomenon has spread beyond Binance, with similar movements recorded on:
- Other centralized exchanges
- Decentralized platforms (DEX)
In some cases, the tokens were quickly purchased by algorithmic or manual traders who took advantage of the flash crash.
Tokens like KAVA, in fact, were purchased at a discount and recovered value in a few minutes.
Implications for the market
- Demonstrates the fragility of crypto markets with low liquidity
- Highlight the systemic risks of misconfigured bots
- Raises doubts about the effectiveness of security and control measures in major exchanges
For those who operate with automatic strategies or leverage, events like this can lead to significant losses in a matter of moments, even without real fundamental news.
This flash crash has highlighted how vulnerable the crypto market is in conditions of low liquidity and high automation.
While awaiting official clarifications from Binance or the operators involved, one message remains clear: even small technical errors can cause great damage in highly interconnected ecosystems.