Binance has pledged to compensate users whose trades were directly affected by system failures during a massive, macro-driven crypto sell-off that wiped out roughly $19–20 billion in leveraged positions, while major DeFi protocols continued operating without interruption. The turmoil was triggered by market panic after then‑US President Donald Trump threatened 100% tariffs on China and new export controls on software, sparking one of the largest liquidation events in crypto history. According to Binance co‑founder Yi He, the exchange experienced transaction delays and other technical issues as trading volumes surged, which in some cases prevented orders from executing or updating properly. Binance has said it will review individual user claims and compensate only verified losses attributable to its own system failures, excluding losses from normal market volatility or unrealized profits. This targeted compensation approach mirrors Binance’s handling of other recent stress events, where it has covered user losses when platform behavior, rather than market moves, caused liquidations. The episode has sharpened the contrast between centralized exchanges and DeFi infrastructure under stress. While centralized platforms such as Binance and OKX reported disruptions amid the liquidation wave, DeFi protocols like Uniswap and Aave processed record volumes and hundreds of millions in on‑chain liquidations without outages or special interventions. Uniswap reportedly saw about $10 billion in daily volume and Aave handled around $180 million in liquidations within an hour, leading DeFi participants such as Euler co‑founder Michael Bentley to characterize the event as a major “stress test” that DeFi passed “flawlessly.” The incident is fueling ongoing debate over the resilience, transparency, and risk models of centralized trading venues versus decentralized protocols during extreme market conditions.

AI-generated background, compiled from web sources — not editorial content.

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