ChainThink report, October 11, Vida, founder of Equation News, posted on social media: "A friend told me recently that there is now a risk-free arbitrage opportunity, which is to use USDE leveraged loans on Binance, with an annualized interest rate of around 26%. His institutional friends used 100 million USDT principal to leverage into 500 million USDE for arbitrage on the Binance trading platform."

Vida explained that this large-scale liquidation was speculated to occur under adverse market conditions with significant price drops in low liquidity scenarios:

· The leveraged positions of USDE arbitrageurs were forcibly liquidated

· Causing the price of USDE to drop

· Leading to a decrease in the collateral capacity of USDE as a unified account collateral

· Triggering more forced liquidations of market makers using USDE as margin

· Causing BNSOL, WBETH and other types of wealth management assets to also trigger liquidation thresholds.

Assets such as BNSOL and WBETH, although having high collateral rates, their value is entirely determined by the order book. At that time, no one was willing to support their peg, leading to price collapse and triggering more forced liquidations. It can be inferred that some market makers using unified accounts also suffered liquidation, which is why there were so many extreme price movements in small-cap coins.