Crypto exchange boss blames Ethena’s USDe for October Crash, while traders hit back

Following the October 10 flash crash and liquidation cascade, a dispute has emerged between crypto exchange executives and market analysts regarding the root cause, with blame placed on Ethena’s USDe stablecoin, leveraged yield loops, thin liquidity, and faulty market mechanisms. This ongoing debate highlights persistent vulnerabilities and differing perspectives on market stability. The incident underscores the challenges in managing leveraged products and liquidity in crypto markets.