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On October 10, the crypto market experienced its largest liquidation event in history, prompting experts like MartyParty to predict a surge in lawsuits and class action claims against what he describes as “market manipulators.”
Expert Claims Manipulation Led To October 10 Crypto Crash
The aftermath of this crash has seen Bitcoin (BTC) and other major cryptocurrencies continue their downward trend this week, with BTC recently falling below the critical $110,000 threshold. Ethereum (ETH), XRP, and Binance Coin (BNB), the largest altcoins, recorded losses of 10%, 17%, and 7%, respectively, in the weekly time frame.
The events of October 10 led to total crypto liquidations exceeding $20 billion, with an alarming 208,864 traders liquidated in just the past 24 hours, amounting to approximately $691.63 million in losses as a result of the ongoing correction.
In a social media post on X (formerly Twitter), MartyParty warned that the ramifications of this event would include lawsuits targeting the alleged manipulators behind the crash. He criticized the centralized exchange (CEX) systems, stating:
The manipulators cleared all the longs to 1.8x illegally. This had nothing to do with crypto. This is centralized exchange and casino systems that are opaque and easily manipulated with no regulation.
Despite the turmoil, MartyParty expressed some optimism, noting that the crypto liquidations have cleared out long positions, which he believes could pave the way for future price increases.
He also added that those responsible for this alleged manipulation would face scrutiny, predicting that this incident could evolve into one of the most significant fraud cases in financial history.
Binance’s Role
Adding to the concerns, another expert, Crypto Emre, highlighted the ease with which crashes can be orchestrated on platforms like Binance. He explained that the tokens visible in a user’s wallet are essentially held in Binance’s wallets behind the scenes.
Emre asserts that the exchange can open short positions on multiple trading pairs simultaneously using private trading bots, which can then quickly sell the tokens held by users.
After closing the short positions at a lower price, the expert alleges that the exchange replaces the sold tokens with their own at a significantly reduced cost.
Emre argued that as long as Binance remains operational, the potential for such manipulation will hinder the emergence of a robust crypto bull market.
As the dust settles from the October 10 crypto crash, it remains uncertain whether regulatory bodies or individuals will take action against these alleged practices in the near future, as predicted by MartyParty.
Featured image from DALL-E, chart from TradingView.com
