The cryptocurrency market has experienced the worst collapse in its history — within just a few hours, over $500 billion vanished from the market, while liquidations exceeded $20 billion.
Bitcoin plunged to $104,582, and Ethereum dropped to $3,460.
What began as ordinary volatility turned into an unprecedented financial avalanche that paralyzed the entire sector.
Who is to blame?
According to the crypto community, the main culprits are Binance, market maker Wintermute, and U.S. President Donald Trump.
$700 Million Moved to Binance Right Before the Crash
Suspicion immediately fell on Wintermute, a market maker linked to Binance.
Analysts noticed that the company transferred more than $700 million to Binance’s hot wallet — just hours before the entire market collapsed.
Soon after, a massive sell-off of Bitcoin, Ethereum, and Solana wiped out over $1.7 billion in market value.
Traders began accusing Binance of manipulation.
“This crash wasn’t about Trump, tariffs, or macroeconomics,” said analyst Hanzo from EveryCryptoTool.
“The real story unfolded in the order books.”
According to Hanzo, Binance’s order books completely collapsed — no bids, no barriers, liquidity vanished.
Wintermute stopped defending prices, sending the market into a free fall as ATOM and SUI prices crashed to $0.001 and $0.56 respectively.
Binance became practically unusable — stop orders froze, limit orders halted, and only forced liquidations were being processed.
Speculation of a Coordinated Attack on Binance
According to Martin Hiesboeck from Uphold, the crash was triggered by a coordinated attack on Binance that exploited a flaw in its Unified Account margin system.
Attackers allegedly took advantage of a vulnerability allowing volatile assets (USDe, wBETH, BNSOL) to be used as collateral.
When USDe dropped to $0.65, it triggered a cascade of liquidations across the system — including major market makers.
“The attack was timed precisely between the announcement of the fix and its implementation,” said Hiesboeck,
estimating total losses between $500 million and $1 billion.
Trader ElonTrades accused Binance of a design flaw — attackers allegedly manipulated the exchange’s internal pricing system while opening short positions on BTC and ETH worth $1.1 billion on Hyperliquid, profiting around $192 million.
Binance Admits Error and Promises Compensation
Binance executives Yi He and Richard Teng publicly apologized and acknowledged issues related to the USDe and BNSOL depeg.
The exchange also announced it will compensate all users who suffered verifiable losses.
However, the incident left serious doubts about the safety of centralized exchanges, especially amid political turmoil that only intensified the chaos.
Trump’s Post That Triggered Panic
To make matters worse, President Donald Trump added fuel to the fire.
On Truth Social, he announced plans for 100% tariffs on Chinese imports, instantly rattling global markets.
Stock indices plunged — and crypto followed suit.
Later, Trump confirmed the tariffs would take effect on November 1, sending markets even deeper into the red.
Analysts said the move acted as a structural shock, forcing several funds to close massive positions.
Trader Kyle from DeFiance Capital noted that WLFI Fund, allegedly linked to Trump’s family, “magically” sold 30% of its shares just before the crash, reportedly due to insider information.
During the crash, WLFI bought back cheap positions, sparking speculation about possible misuse of insider data.
Price Discrepancies, Chaos, and System Failures
Exchanges descended into total confusion during the collapse.
On Binance, OKX, Bybit, and Kraken, DOGE dropped to $0.09, while on Coinbase, it traded significantly higher.
Users reported price data outages, frozen trades, and inaccessible live updates.
The crypto community remains divided — was this a targeted attack, internal manipulation, or the biggest systemic failure in crypto history?
One thing is certain:
September 11 will forever be remembered as the day when the world of digital assets shook to its core — and when the question of who truly controls the market became frighteningly real.
#TRUMP , #cryptocrash , #Wintermute , #bnb , #CryptoNews
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