Binance clarified that the sharp October flash crash was driven by a macro-level liquidation cascade, not by any technical issue or failure on the exchange itself.

According to the exchange, a mix of high leverage, thin liquidity during volatile macro conditions, and automated liquidations created a rapid chain reaction. As prices dropped, forced sell orders accelerated the move, amplifying downside pressure across multiple markets.

Binance emphasized that its systems remained stable throughout the event, and trading infrastructure functioned as designed. The incident highlights how broader market structure and leverage can trigger sudden price dislocations, especially during periods of global uncertainty, rather than pointing to problems with exchange operations.

In short, the crash was a market-wide liquidation spiral, not an exchange breakdown.