BNB hits all-time high as crypto recovers after $19 billion in liquidations; Binance pays out $283 million in compensation to users
BNB hits new high after $19 billion in liquidations: Binance responds with compensation
Binance ecosystem token BNB hit a new all-time high on Monday, hitting $1,370, according to CoinMarketCap data. This comes just two days after a record-breaking crypto market crash that saw $19 billion in positions liquidated.
Despite the general turbulence, BNB outperformed the rest of the market, showing a rapid recovery and a new wave of confidence in the token.
Users blame Binance for glitches during the crash
Some traders have blamed Binance for technical glitches that allegedly blocked the ability to close positions during the crash.
“Binance shut down the system right when the market was falling — I couldn’t close my futures,” trader SleeperShadow wrote on X.
In response, Binance co-founder Yi He called the allegations false, explaining that the decline was caused by global market factors, not the platform’s actions.
“The level of forced liquidations on Binance remained within normal limits relative to trading volume. It was a market phenomenon,” she noted.
While some modules of the system did experience brief “lags,” the main spot and futures engines were operating stably.
On Sunday, the exchange announced that it had paid out $283 million in compensation to users affected by the technical glitches.
Suspicions of manipulation and hidden liquidations
Hyperliquid CEO Jeff Yang said that some centralized exchanges (CEXs) “understate the true number of user liquidations.”
“On Binance, even if there are thousands of liquidations per second, only one is publicly displayed. This could be a 100-fold understatement,” wrote Yan.
Such reports have raised concerns among traders who fear a lack of transparency in centralized platforms’ reporting.
Wintermute under suspicion after $700 million transfer
Another trigger for the market collapse was a massive transfer of Bitcoin by market maker Wintermute.
Analyst Merlijn The Trader reported that the company transferred $700 million in BTC to Binance just hours before the collapse.
“After the transfer, there was a sharp dump. At $108K, the system froze, the stops did not work,” wrote an analyst at X.
Wintermute founder Yevgeny Gaevoy said that the crypto market drop in 2025 is “directly related to the TradFi events,” in particular, with the pressure on the markets after Donald Trump’s tariff announcements and the volatility caused by the DeepSeek project.
The market returns to equilibrium
Despite the chaos, analysts note that BNB retains internal strength. The token’s growth after mass liquidations indicates confidence in the Binance ecosystem and the gradual recovery of risky assets after a historic collapse.
If the current dynamics continue, BNB could become a symbol of the crypto market’s recovery after Trump’s “tariff shock” and a new era in crypto trading.
Related: Trump may pardon CZ: White House discusses Binance founder’s return
