Binance Rejects Claims of System Malfunction Following $5M AKE Futures Liquidation

TLDR

• More than 30 leveraged positions on Binance’s AKEUSDT perpetual contract were liquidated in rapid succession on Sept. 3, resulting in reported losses exceeding 5 million USDT
• The AKE token experienced an extreme price jump from approximately $0.0076 to nearly $0.045, representing a surge of about 492%
• Binance maintains that all pricing mechanisms and liquidation protocols operated correctly, attributing the event to extreme market fluctuations
• The affected trader contends the price movement was the result of deliberate manipulation rather than organic market activity
• No compensation has been provided by Binance, while the trader continues demanding complete access to trade execution and risk management data

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A cryptocurrency trader has reported losses exceeding 5 million USDT following the liquidation of more than 30 positions on Binance’s AKEUSDT perpetual futures market on September 3.

The individual, identified on X as xunlu, reports that all liquidations occurred in rapid succession around 5:44 a.m. UTC+8. The trader maintains that the price movement resulted from deliberate market coordination rather than organic trading dynamics.

Details of the AKE Price Surge

During the trading session, AKE’s value jumped from approximately $0.0076 to nearly $0.045. This represented an extraordinary price increase of around 492% within an extremely compressed timeframe.

According to the trader, this abrupt price escalation eliminated his funding-rate arbitrage strategies. Such positions are structured to capture periodic payments from market imbalances rather than speculate on directional price movements.

The exchange has stated that all platform systems functioned normally during the incident. Following an internal investigation, Binance reports finding no anomalies in its pricing algorithms, risk management protocols, or liquidation mechanisms.

Understanding Binance’s Mark Price Methodology for AKE

Since Binance does not offer AKE trading on its spot exchange, the AKEUSDT perpetual futures contract derives its mark price from multiple external spot market sources.

This aggregated index approach is designed to mitigate the risk of isolated price anomalies triggering widespread liquidations. According to Binance, this methodology functioned properly on September 3.

The trader disputes this assessment, arguing that the mark price determination nevertheless led to unjustified liquidations. He has formally requested that Binance provide comprehensive trading records, complete liquidation details, and all risk-control documentation from that session.

Available aggregated spot market data confirmed significant volatility on September 3. While the peak combined spot price remained below the contract high referenced by the trader, this discrepancy has not been thoroughly clarified.

Binance characterizes the liquidations as inherent risks associated with leveraged trading during periods of high volatility. The platform has rejected the trader’s assertion of coordinated market manipulation.

The trader referenced a previous TUT liquidation incident where certain rival exchanges provided compensation to impacted traders. Binance maintains that the circumstances of these two events are fundamentally different.

To date, no regulatory authority or independent auditor has issued public findings regarding the trader’s accusations. While Binance has confirmed receipt of the complaint, the exchange has not announced any compensation arrangement.

The trader remains persistent in demanding complete transparency and full disclosure of all pertinent data from Binance related to the incident.

The post Binance Rejects Claims of System Malfunction Following $5M AKE Futures Liquidation appeared first on Blockonomi.

Source: https://blockonomi.com/binance-rejects-claims-of-system-malfunction-following-5m-ake-futures-liquidation/