Recent market plunge may have been a targeted attack on Binance, analyst says

The recent market plunge may have been a premeditated attack targeting Binance and its major market makers, according to Forgiven, an executive at the Chinese public chain project Conflux (CFX). In a statement on X, he explained that the attack exploited a structural vulnerability in the margin system of Binance's unified accounts. The executive noted that Binance allows not only USD-margined and coin-margined products but also Proof-of-Stake (PoS) derivatives and asset management-style stablecoins to be used as unified margin assets, with USDe, BNSOL, and WBETH being the most affected. Because the liquidation prices for these assets are determined by fluctuating spot order books rather than a fixed peg, the sharp market movements triggered massive liquidations. Forgiven added that this forced both retail traders and large market makers using these assets as margin to liquidate all their positions. He pointed out that USDe's spot price fell significantly on Binance while remaining above $0.90 on other major exchanges. Similarly, some altcoins hit abnormally low prices exclusively on Binance, suggesting a link to the forced liquidations of major market makers.