- Binance’s system outage blocked key safety orders, causing heavy trader losses across markets.
- Over 100 minutes of API and order failures raised questions about Binance’s risk control systems.
- Traders demand audits after liquidity collapse and forced liquidations across multiple exchanges.
Multiple traders reported a technical failure on October 11, 2025, where Binance’s automated risk-control and order systems rejected exit attempts for more than 100 minutes.
Logs from affected accounts show the failure window from 05:12 to 07:02 (UTC+8), which corresponds to 21:12 to 23:02 UTC on October 10. During that span, orders designed to cap exposure, including ReduceOnly instructions, returned errors instead of executing.
How the failure showed up in the stack
Users recorded HTTP 503 responses and API error codes such as -1008 (“Server busy”) and -4118 (“ReduceOnly failed”). That pattern suggests both infrastructure congestion and application-level rule failures inside the exchange’s order pipeline.
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Traders said Binance has publicly stated that ReduceOnly safety orders receive priority under high load, yet logs show those orders did not execute when volatility hit.
Losses escalated as liquidity thinned
One market maker reported a loss of 591,835 USDT across DOGE and XRP after repeated rejections blocked risk-control exits. Other participants shared similar traces across multiple pairs, noting that Binance’s order-book depth evaporated during the incident.
Independent checks cited in the submission found deeper price deviations on Binance versus peer venues in the same window, which then bled into derivatives indices and forced liquidations across several exchanges.
Why traders call this a platform-level incident
Traders argue that Binance’s system failure turned normal market risk into a platform-level incident. They emphasized that while users accept trading volatility, they cannot manage risk when infrastructure prevents order execution.
Affected parties have requested detailed audit logs from Binance to verify how the “ReduceOnly priority” mechanism malfunctioned. Some industry observers have likened the situation to previous cases where exchanges faced regulatory action for system-level errors that affected client trades.
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