Key Points
- Over 30 positions were liquidated within minutes on September 3, resulting in reported losses exceeding 5 million USDT on Binance’s AKEUSDT perpetual futures contract
- AKE experienced a dramatic price spike from approximately $0.0076 to nearly $0.045, representing a surge of about 492%
- Binance maintains its pricing mechanisms and liquidation protocols functioned properly, attributing the incident to market volatility
- The affected trader contends the price movement resulted from a coordinated short squeeze rather than organic market activity
- Binance has declined to provide compensation and the trader continues demanding comprehensive trading logs and risk management data
A cryptocurrency trader is reporting losses exceeding 5 million USDT following the liquidation of more than 30 positions on Binance’s AKEUSDT perpetual futures contract on September 3.
The affected trader, identified on X as xunlu, reports the liquidations occurred rapidly at approximately 5:44 a.m. UTC+8. The individual contends the price action resulted from orchestrated market activity rather than organic trading behavior.
Dramatic Price Surge in AKE Token
During the trading session, AKE’s price experienced an extreme surge from approximately $0.0076 to nearly $0.045. This represents an increase of roughly 492% within a compressed timeframe.
According to the trader, this abrupt price spike eliminated his funding-rate arbitrage positions. Such strategies are structured to capture small payments from market inefficiencies rather than speculate on directional price movements.
Binance maintains its infrastructure operated without incident during the entire episode. The exchange reports conducting a comprehensive internal investigation that revealed no abnormalities in its pricing mechanisms, risk management protocols, or liquidation systems.
Binance’s AKE Mark Price Methodology
Since Binance does not offer AKE trading on its spot exchange, the AKEUSDT perpetual contract derives its mark price from price feeds across multiple external spot markets.
This aggregated multi-exchange index is designed to mitigate the risk of isolated price anomalies triggering widespread liquidations. Binance asserts this methodology performed according to design specifications on September 3.
The trader disputes this assessment, maintaining the mark price calculation methodology nevertheless produced unjust liquidations. He has formally requested Binance disclose comprehensive trading records, liquidation details, and complete risk management logs from the session in question.
Available aggregated spot market data confirms significant volatility on September 3. While the peak aggregated spot price remained below the futures contract high cited by the trader, the discrepancy has not been thoroughly clarified.
Binance characterizes the liquidations as inherent risks associated with leveraged trading during periods of extreme volatility. The exchange 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 the two situations are fundamentally different and not comparable.
To date, no regulatory authority or independent investigator has issued public findings regarding the trader’s allegations. While Binance has acknowledged receiving the complaint, the exchange has not announced any plans for compensation.
The trader continues advocating for complete transparency and full disclosure of all pertinent data from Binance regarding the incident.
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