Binance Denies Glitch in $5M AKE Contract Liquidations

Binance has pushed back against claims that a system error caused over $5 million in losses for futures traders. The controversy surrounds the AKEUSDT perpetual contract, which experienced wild price swings on September 3.

During the incident, the price of the AKE contract skyrocketed from around $0.0076 to nearly $0.045 in a matter of moments. This sudden surge triggered a wave of liquidations, catching many traders off guard and sparking accusations of a pricing glitch on the platform.

However, the exchange clarified that its systems functioned exactly as intended. According to Binance, the liquidations were the direct result of rapid market volatility rather than any technical malfunction or faulty pricing feeds.

Traders are now watching closely to see how the market reacts and if any further details emerge. For now, the event serves as a sharp reminder of the risks involved in trading volatile perpetual contracts during sudden price spikes.