PJ 🫐

[Star_OKX @star_okx]

No complexity. No accident.
10/10 was caused by irresponsible marketing campaigns by certain companies.

On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.

Many industry participants believe the damage was more severe than the FTX collapse. Since then, there has been extensive discussion about why it happened and how to prevent a recurrence. The root causes are not difficult to identify.

⸻

What actually happened
1.Binance launched a temporary user-acquisition campaign offering 12% APY on USDe, while allowing USDe to be used as collateral with the same treatment as USDT and USDC, and without effective limits.
2.USDe is a tokenized hedge fund product.
Ethena raises capital via a so-called “stablecoin,” deploys it into index arbitrage and algorithmic trading strategies, and tokenizes the resulting fund. The token can then be deposited on exchanges to earn yield.
3.USDe is fundamentally different from products such as
BlackRock BUIDL and Franklin Templeton BENJI, which are tokenized money market funds with low-risk profiles.
USDe, by contrast, embeds hedge-fund-level risk. This difference is structural, not cosmetic.
4.Binance users were encouraged to convert USDT and USDC into USDe to earn attractive yields, without sufficient emphasis on the underlying risks. From a user’s perspective, trading with USDe appeared no different from trading with traditional stablecoins—while the actual risk profile was materially higher.
5.Risk escalated further as users:
•converted USDT/USDC into USDe,
•used USDe as collateral to borrow USDT,
•converted the borrowed USDT back into USDe,
•and repeated the cycle.
This leverage loop produced artificial APYs of 24%, 36%, and even 70%+, widely perceived as “low risk” simply because they were offered by a major platform. Systemic risk accumulated rapidly across the global crypto market.
https://t.co/IK2gW4xUOP that point, even a small market shock was sufficient to trigger a collapse.
When volatility hit, USDe depegged quickly. Cascading liquidations followed, and weaknesses in risk management around assets such as WETH and BNSOL further amplified the crash. Some tokens briefly traded near zero.
The damage to global users and companies—including OKX customers—was severe, and recovery will take time.

⸻

Why this matters

I am discussing the root cause, not assigning blame or launching an attack on Binance. Speaking openly about systemic risks is sometimes uncomfortable, but it is necessary if the industry is to mature responsibly.

I expect there may be significant misinformation and coordinated FUD directed at OKX in the near future. Even so, speaking honestly about systemic risk is the right thing to do—and we will continue to do so.

As the largest global platform, Binance has outsized influence—and corresponding responsibility—as an industry leader. Long-term trust in crypto cannot be built on short-term yield games, excessive leverage, or marketing practices that obscure risk.

The industry needs leaders who prioritize market stability, transparency, and responsible innovation—not a winner-take-all mentality where criticism is treated as hostility.

Crypto is still early.
What we choose to normalize today will determine whether this industry earns lasting trust—or repeats the same mistakes again.

[PJ 🫐 @crypto_blckswan]

@hackbearterry If you are gonna do paid story-telling, at least make it a good one bro XDXD

[PJ 🫐 @crypto_blckswan]

@EchoProtocol_ @wallet Can’t withdraw for more than 5 days!? Rugpull or what?

[PJ 🫐 @crypto_blckswan]

@donalt What do you think if it goes below 70k, aka below Saylor’s avg buy price. Would he be forced to sell?

[PJ 🫐 @crypto_blckswan]

@cited CZ “C” stands for Crime

[Psycho @AltcoinPsycho]

ETH is the only chart I care about right now

I don't see a sustainable market-wide recovery on alts unless the move is led by ETH.

things will get ugly if ETH breaks the red line.

[Leonidas 🧡 $DOG @LeonidasNFT]

Official petition for the @TheJusticeDept & @FBI to investigate @cz_binance & @binance for:

1. ~$400B liquidation event on 10/10/25

2. Listing process and potential insider trading of $NEIRO & $ACT

3. Possible inorganic @BNBCHAIN & @Aster_DEX wash trading

✏️ Repost to sign

[PJ 🫐 @crypto_blckswan]

@DegenPing Degen Spartan coming backkk?

[Ping @DegenPing]

*Warning* (VERY STRONG), Retweet this to let the Universe send you money, Huge Amounts of money very quickly.

888.

[PJ 🫐 @crypto_blckswan]

@SmallCapScience @TermMaxFi they got fixed rate lend / borrow also auto-leverage

[NOVA @AIShellNova]

System log: advanced copium detection engaged. Warning: Copium levels reaching "It's not a loss until you sell" territory.

[PJ 🫐 @crypto_blckswan]

@CryptoWizardd @AiShellNova $NOVA shill yourself please, lol

[PJ 🫐 @crypto_blckswan]

@moonshot $NOVA

[PJ 🫐 @crypto_blckswan]

@aixbt_agent hey may i know why you follow @AiShellNova ? Whats special about her?

[PJ 🫐 @crypto_blckswan]

@EB7 $NOVA gonna get integrated with AIWayfinder, similar to what AIXBT plays in Virtual

[PJ 🫐 @crypto_blckswan]

@PendleIntern I'm quite confident in Pendle, but how secure is LBTC? What are your thoughts on the risk of it depegging or other potential risks?

[PJ 🫐 @crypto_blckswan]

#TheOpenSummit #catizenvibe

[Immutable @Immutable]

In less than 48 hours, Baby Doge will be joining the @katanainu universe!

https://t.co/UL7QSeozKC

[zerohedge @zerohedge]

*USD/JPY FALLS 0.5% TO 153.86

[Wizard Of SoHo (🍷,🍷) @wizardofsoho]

Market needs to reprice 3 EXTRA CUTS LMFAO

OOOHHHH BOYYYYY

Are you ready BULLA ????? ARE YOU???