CZ Clarifies: The BTC/USD1 trading pair "flash crash" was caused by low liquidity, leading to a momentary price fluctuation, with no liquidation occurring

By: theblockbeats.news|2026/04/17 13:00:58

BlockBeats News, December 26th, Solv Protocol's Business Development Lead Catherine announced that "Binance partnered with USD1 to launch a 20% fixed annualized deposit promotion. Many users swapped USDT for USD1, causing USD1 to briefly trade at a premium of around 0.39%. Some funds were then lent out through the Lista DAO lending market, using SolvBTC or SolvBTC-BTCB as collateral to borrow USD1 and gradually sold on the spot market to meet demand.

During this process, some traders directly used market orders to sell BTC against USD1. However, due to the thin liquidity of this trading pair, a large market sell order quickly wiped out the buy side, temporarily reducing the BTC price, only to be swiftly bought back up by arbitrage bots to restore the price."

CZ clarified regarding this event, stating that "This actually indicates that the exchange platform did not participate in the relevant trades. Due to the low liquidity of the newly listed trading pair, a large market order could easily drive a momentary price spike, but arbitrageurs quickly corrected the price back to normal levels. Additionally, since this trading pair was not included in any index, no liquidations were triggered."

-- Price

Claude Code founder's in-depth sharing at the Sequoia Conference: AI is downgrading "coding" to a basic skill, cross-domain product insights have become the new core barrier, traditional SaaS moats are completely collapsing, and the golden era of startups disrupting large companies has already begun...

The payment moment of AI agents: Who will become the Stripe of the machine economy?

Cryptographic infrastructure and card organizations are not mutually exclusive; the winner is the unified gateway that connects both tracks simultaneously.

Morning Report | MoonPay acquires Solana's execution layer DFlow; Strategy releases Q1 financial report; Manta Network announces the termination of Manta staking program

Overview of Important Market Events on May 6th

How MegaETH Achieved a TVL of 700m Within a Week of TGE? Analyzing the Packaging Strategy

MegaETH created a flywheel with USDm, aiming to attract a large number of users and funds in the short term.

Futures Trading Hours: Trade Cryptocurrency 24/7 and Earn Back Up to 45% in Trading Fees

Learn futures trading hours and the best time to trade crypto futures. Discover 24/7 market insights, peak trading sessions, and how to earn back up to 45% in fees.

Why is a16z Crypto raising another $2.2 billion to heavily invest in Web3?

This round of funding bets on the transition of cryptocurrency from the infrastructure development phase to the phase of real user adoption. Whether focusing on cryptocurrency or crossing over to AI, this real money will only flow to those places that can turn technology into products.

Polymarket Underlying Algorithm Explained

It may be the only article on Twitter that clearly explains all the underlying design of Polymarket in plain language.