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- Binance traders report blocked exits after system glitch triggers heavy losses.
- ReduceOnly orders failed despite Binance’s promise of priority protection.
- Traders demand full audit after 100-minute disruption causes liquidity crash.
A serious system glitch on Binance left traders unable to exit positions for more than 100 minutes. The disruption took place on October 11, 2025, between 05:12 and 07:02 (UTC+8).
In the failure, customers also reported that ReduceOnly and exit orders continued to give errors. Orders sent messages like “Server busy” and ReduceOnly failed” instead of being executed. The malfunction occurred at the time of extreme volatility in the markets. Traders claimed that Binance’s automated controls discarded important orders intended to reduce exposure.
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Binance has asserted in the past that high-loading puts priority with ReduceOnly orders. Traders, however, claimed that the feature collapsed once market pressure intensified.
The error patterns were observed to be similar across several trading pairs, as indicated by logs from various affected accounts. Those breakages allowed users not to be able to limit risk in case prices were moving at a fast pace.
Massive Losses and Vanishing Liquidity
The order books on Binance experienced a rapid decline in liquidity at the time of the incident. One of the market makers said that it had lost 591,835 USDT of DOGE and XRP purchases.
Other traders encountered the same problems as the spreads between Binance and competing exchanges became broader. Some independent monitors verified deeper price movements in Binance over the same period.
The resulting difference led to distortions in indices, which in turn caused forced liquidations on other exchanges. The effect of cascading increased market instability and led to higher losses for traders.
It was reported that the matching engine had been overloaded during the period. This implied that internal systems were unable to handle the increased traffic when the number of orders skyrocketed.
Demands for Accountability and Transparency
Traders stated that it was a platform-level failure, not an ordinary trading loss. They claimed that they were unable to manage positions due to operational errors.
Traders, in turn, said that it is impossible to control exposure when a system blocks exits. This type of breakdown destroys trust in the reliability of exchanges in volatile times.
This is because affected users have demanded that Binance provide detailed audit logs for them to examine independently. They would like to know how the ReduceOnly mechanism failed to work with market pressure.
This scenario was compared to the past instances of exchange outages that resulted in investigations. Most of them are calling upon Binance to clarify the breakdown and outline strategies to prevent similar occurrences in the future.
The traders demand that it will take complete openness and technical reformation to regain trust. In its absence, skepticism regarding Binance’s ability to protect users’ orders is likely to persist.
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