Binance says the tokens never actually dropped to zero and attributes the scare to a screen glitch. Several assets briefly displayed a $0 price, alarming users, but the exchange insists their real value held. Binance has pledged $283 million to users who lost money during the incident.
The glitch hit during a wild market spell that saw record forced sales. Binance maintains that only the on-screen number broke while the assets themselves retained value, and the trading engine remained intact.
The root cause, according to Binance, was a decimal rounding rule that printed zero below a tiny display threshold. Old limit orders and market-maker sales fed the same rule, making charts look like a crash even though the underlying prices were not zero.
Prices elsewhere underscored that the issue was visual rather than fundamental. Ethena’s USDe, for instance, printed $0.65 on Binance spot but around $0.90 on other venues and bounced back within a day.
Pairs and tokens reported as hit included BNSOL/WBETH and assets such as USDe (Ethena), WBETH, BNSOL, IOTX, and ATOM. Binance says it will fix the screen code and tighten the rules that set the displayed price.
Knock-on effects
Liquidity and trust took a hit, as a false $0 tag can spook people or money away even if the assets keep their value.
Execution and compliance risks were highlighted, with stale orders and flawed display rules increasing day-to-day risk for staff and regulators.
Reputation sits next to cost, with the $283 million payout serving both as a bill and a promise to win users back.
Regulatory spotlight is likely to intensify, giving watchdogs a fresh case to ask how safe centralised exchanges are.
Binance will keep any profit it earned from the glitch and roll out screen fixes. The tech crew must now install the patch and watch it hold when the next volatile day arrives.
