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Binance pins crypto’s worst-ever liquidation day on macro risks, not exchange failure

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Binance pins crypto's worst-ever liquidation day on macro risks, not exchange failure

Binance blamed the October 10 flash crash on a macro shock colliding with heavy leverage and evaporating liquidity, rather than any breakdown in its trading systems following speculative chatter on social media.

In a report released Saturday, the exchange said global markets were already under pressure following trade-war headlines when crypto markets cracked. Bitcoin and ether had rallied for months into early October, leaving traders heavily positioned and exposed.

At the time, open interest across bitcoin futures and options exceeded $100 billion, creating conditions ripe for forced deleveraging once prices started to fall, it said.

The selloff quickly fed on itself. As prices slid, market makers activated automated risk controls and reduced exposure, pulling liquidity from order books. Data cited by Binance, sourced from Kaiko, showed bid-side depth nearly vanished on several major exchanges during the peak of the move. With fewer resting orders, even small liquidations pushed prices sharply lower.

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The disruption was not limited to crypto. U.S. equity markets lost an estimated $1.5 trillion that day, with the S&P 500 and Nasdaq posting their largest one-day drops in six months. Binance said roughly $150 billion in systemic liquidations occurred across global markets.

Blockchain congestion added to the strain. Ethereum gas fees spiked above 100 gwei at times, slowing transfers and limiting arbitrage between venues. With capital unable to move quickly, price gaps widened and liquidity fragmented further.

Binance incidents that occured

Binance acknowledged two platform-specific incidents during the crash but said neither caused the broader market move.

The first involved a slowdown in its internal asset-transfer system between 21:18 and 21:51 UTC, affecting transfers between spot, earn and futures accounts. Core trading systems remained operational, but some users temporarily saw zero balances displayed due to backend timeouts.

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Binance said the issue stemmed from a database performance regression under surge traffic and has since been fixed. Affected users were compensated.

The second incident involved temporary index deviations for USDe, WBETH and BNSOL between 21:36 and 22:15 UTC, after most liquidations had already occurred. Binance said thin liquidity and delayed cross-venue rebalancing caused local price moves to disproportionately affect index calculations.

Methodology changes have since been implemented, and impacted users were compensated.

Binance said about 75% of the day’s liquidations occurred before the index deviations, pointing to the initial macro shock as the primary driver.

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In total, the exchange said it compensated users with more than $328 million and launched additional support programs to stabilize participants affected by the crash.

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Mastercard Hires for Crypto Just as Citrini Warns It Could Be Obsolete

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Mastercard Hires for Crypto Just as Citrini Warns It Could Be Obsolete

Mastercard is hiring a Director of Crypto Flows to lead stablecoin-linked card issuance, scale DeFi payment flows, and rewrite network rules for Web3 transactions.

The job posting, first surfaced by crypto journalist Frank Chaparro on Feb. 24, signals a structural push beyond the pilot-stage experiments the payments giant has run so far.

The Timing That Writes Itself

Days earlier, Citrini Research published “The 2028 Global Intelligence Crisis,” a doomsday scenario that rapidly went viral on Substack. The report maps a chain reaction in which AI agents progressively dismantle fee-based intermediaries — and payment networks sit squarely in the blast radius. Citrini specifically names Mastercard’s Q1 2027 earnings as a potential inflection point, the moment when agentic commerce begins routing around card interchange via stablecoins.

The logic is straightforward. When AI agents transact on behalf of consumers, a 2-3% card interchange fee becomes an irrational cost. Stablecoin rails settle the same transaction for near zero. In that world, Mastercard doesn’t lose to a competitor. It loses to a protocol.

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The gap Mastercard needs to close

The vulnerability is not hypothetical. Stablecoins transferred $18.4 trillion in value in 2024, surpassing both Visa ($15.7 trillion) and Mastercard ($9.8 trillion) in raw volume, according to Artemis Analytics. The comparison is imperfect — much of that is trading, not payments — but the directional signal is clear.

Mastercard’s own CEO, Michael Miebach, told analysts in January that the company is “leaning in” to stablecoins and agentic commerce, calling the latter a trend in which “the train is leaving the station.” Yet he framed stablecoins as “another currency we can support within our network.”

That framing is precisely what Citrini challenges. The doomsday thesis is not that stablecoins replace card payments at today’s checkout counter. It is that a new category of commerce — machine-to-machine, micropayment-dense, 24/7 — will emerge entirely outside the card network’s design envelope.

Building rails or getting routed around

The new role suggests Mastercard is beginning to internalize this risk. Mastercard has laid the groundwork: onboarding multiple stablecoins onto its network in June 2025, expanding Circle’s USDC settlement across the Middle East and Africa, and reportedly pursuing a $2 billion acquisition of crypto infrastructure startup zerohash.

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But the gap with Visa persists. Visa’s on-chain stablecoin settlement reached an annual run rate of $3.5 billion by late 2025. Crypto-native issuers like Rain and Reap built their card programs primarily on Visa rails, with Rain scaling to over $3 billion annualized after securing direct Visa membership. Industry analysis suggests Visa’s early crypto-native alignment translated into share, while Mastercard’s exchange-focused approach generated less volume.

Coincidence or confirmation

Regardless of whether Mastercard’s hiring push was triggered by Citrini’s report, the more important reading is that the diagnosis is converging. A research outfit writing from 2028 and a payments giant hiring in 2026 point at the same fault line. Card networks that cannot accommodate stablecoin-native commerce will be bypassed, not disrupted.

The canary, as Citrini wrote, is still alive. The question is whether Mastercard is building a bridge to close the gap—or just hiring someone to watch it widen.

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index falls 2% as nearly all constituents decline

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9am CoinDesk 20 Update for 2026-02-24: vertical

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 1816.14, down 2.0% (-36.33) since 4 p.m. ET on Monday.

One of the 20 assets is trading higher.

9am CoinDesk 20 Update for 2026-02-24: vertical

Leaders: ICP (+1.2%) and NEAR (-0.3%).

Laggards: BCH (-4.2%) and SUI (-2.5%).

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The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

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Ethereum Foundation begins staking 70,000 ETH from treasury

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Ethereum Foundation begins staking 70,000 ETH from treasury

The Ethereum Foundation has begun staking a portion of its treasury holdings, marking a significant shift in how the organization manages its ETH reserves.

Summary

  • The Ethereum Foundation has begun staking its treasury, starting with a 2,016 ETH deposit and planning to stake approximately 70,000 ETH in total.
  • Staking rewards will be directed back to the foundation’s treasury to help fund core operations, including protocol R&D, ecosystem grants and community development.
  • The validator setup uses open-source tools from Attestant, including Dirk and Vouch, with a focus on distributed signing, minority clients and multi-jurisdiction infrastructure.

Ethereum Foundation puts treasury to work with 70K ETH staking plan

In a post on X, the foundation said it has made an initial deposit of 2,016 Ethereum (ETH) and plans to stake approximately 70,000 ETH in total, with staking rewards directed back into its treasury. The move follows a Treasury Policy announced last year and is designed to both support network security and help fund the foundation’s core operations.

The staking setup is being implemented using open-source tools developed by Attestant, including Dirk and Vouch.

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Dirk functions as a distributed signer, allowing validators to be operated across multiple jurisdictions and reducing the risk of a single point of failure.

Vouch enables the use of multiple consensus and execution client pairings, helping mitigate client diversity risks, a key concern for Ethereum’s decentralization model. The foundation said its validator setup incorporates minority clients and a mix of hosted infrastructure and self-managed hardware spread across several regions.

The announcement comes at a notable moment for Ethereum. Recently co-founder Vitalik Buterin sold roughly $7 million worth of ETH amid a broader price pullback, sparking discussion about treasury management and market signals.

At the same time, the foundation has been expanding ecosystem support through new grant initiatives, including updates to its Ecosystem Support Program aimed at funding protocol research, community development and public goods projects.

By staking a portion of its holdings, the foundation is effectively putting dormant ETH to work, generating yield while reinforcing validator participation. The move aligns the treasury more closely with Ethereum’s proof-of-stake design and provides an additional funding stream for long-term development efforts without relying solely on asset sales.

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Stripe Eyes PayPal Acquisition as Stock Hits Multi-Year Low

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Stripe Eyes PayPal Acquisition as Stock Hits Multi-Year Low

Payment processing firm Stripe is reportedly considering an acquisition of all or parts of its rival PayPal Holdings.

Stripe is in early talks and has expressed preliminary interest in PayPal or parts of its business, though no deal is guaranteed, Bloomberg reported on Tuesday, citing people familiar with the matter.

It comes as Stripe, which enables enterprises to accept payments, make payouts, and automate financial processes, said on Tuesday that it was valued at $159 billion in a tender offer to shareholders and employees, a 74% jump from a year ago.

The move comes as PayPal has been reportedly struggling to compete with the likes of Google Pay and Apple Pay, which are embedded in consumer smartphones.

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Stripe president John Collison told Bloomberg that “PayPal has had, obviously, a tough time over the past few years, and the landscape has changed quite a bit with Apple Pay and Google Pay and everything like that.”

“I can’t talk about any, you know, M&A [mergers and acquisitions] hypotheticals, but they’ve definitely had a tough time,” he added. 

PayPal stock gains on the day

PayPal is also in leadership transition, with new CEO Enrique Lores set to take over on March 1 following the ouster of Alex Chriss, amid missed earnings estimates and slowing payment volumes.

Related: PayPal draws takeover interest following 46% stock slide: Report

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PayPal stock (PYPL) gained 6.74% on Tuesday to end the day trading at $47.02, according to Google Finance. However, shares in the payments platform have declined almost 20% since the beginning of this year and are down 85% from their 2021 all-time high of just over $300. 

PayPal shareholders have had a rough ride this year. Source: Google Finance

PayPal, Stripe have serious stablecoin ambitions 

PayPal began offering crypto trading in the US in 2020 and launched its own stablecoin PYUSD in 2023. The dollar-pegged asset has gained traction in recent months with its market capitalization topping $4 billion for the first time on Feb. 14.

Stripe has also been dabbling in crypto with its stablecoin platform Bridge, which received conditional approval to operate as a federally chartered national trust bank under the US Office of the Comptroller of the Currency (OCC) on Feb. 17. 

Stripe first offered stablecoin-based accounts globally in May 2025. A merger could see the new entity become a serious player in the stablecoin market. 

Magazine: Bitdeer sells all Bitcoin, Metaplanet rejects misconduct claims: Asia Express

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