Dragonfly's partner refuted the claim that "Binance + Ethena caused the crash on October 11th," suggesting it was more likely due to a combination of systemic failures.

Haseeb Qureshi, Managing Partner of Dragonfly, commented on recent claims that the October 11th market crash was triggered by Binance and Ethena, stating that this narrative is untenable in terms of timeline, market propagation path, and evidence. He pointed out that Bitcoin's price bottomed out approximately 30 minutes before the USDe anomaly on Binance, clearly reversing the causal relationship. Furthermore, the USDe price deviation occurred only on Binance and did not spread to other exchanges, failing to explain the large-scale liquidation across the entire market, and is fundamentally different from events like Terra that caused global balance sheet shocks. Haseeb believes a more reasonable explanation is the confluence of multiple factors: Trump's tariff remarks disrupted the market on Friday night, the Binance API anomaly prevented market makers from cross-platform hedging, liquidation and ADL mechanisms amplified volatility, and the crypto market lacks traditional financial circuit breakers and self-stabilizing mechanisms, ultimately causing the market to evolve along an unfavorable path. He emphasized that there was no single, simple, and conspiratorial "culprit" behind 10/11. Although the market suffered a severe blow, it was not permanently damaged in the long run and only needs time to restore liquidity and confidence.