Binance Faces Criticism Over Handling of AKEUSDT Liquidations

A trader claims to have lost over $5 million in a matter of minutes on Binance's AKEUSDT contract due to extreme market volatility. The token's price spiked 500% within eight hours, prompting a cascade of liquidations.

Binance attributes the losses to normal market conditions and notes that its systems functioned normally during the incident. However, the trader alleges that this was not ordinary volatility but rather deliberate short-squeezing.

The complaint cites the TUT episode on August 9, where other exchanges compensated users for losses incurred due to a suspected squeeze in a thin token. Binance declined similar payouts.