NYSEA:IBIT News 2 January 2026

February 1, 2026, 3:56 PM EST. Binance, the world's largest crypto exchange, is at the center of controversy following a $19 billion forced liquidation on Oct. 10, the biggest single-day crypto wipeout by dollar value. Bitcoin plunged 12.5%, its sharpest drop in over a year, amid a sudden liquidity crunch. Critics, including Ark Invest CEO Cathie Wood, blame a Binance software glitch for triggering a wave of deleveraging, though Binance denies any fault, calling accusations "far-fetched." The incident has thinned market liquidity, widened bid-ask spreads, and dented traders' confidence, contributing to bitcoin's sluggish recovery from $124,800 to $80,000. Rival exchanges and decentralized platforms highlight the event as damaging industry trust, while Binance insists the crash stemmed from broader market forces and excessive leverage rather than internal errors.