Bitcoin (BTC) crashed to just $eight,100 on Oct. 21 — but simply if yous were trading on Binance'southward defended The states exchange, Binance.U.s.a..

On Oct. 21, Binance.Usa all of a sudden printed a one-minute candle that took BTC/USD from $65,815 to $8,200 — a drop of 87%.

"Shouldn't be happening"

In what traders call a "scam wick," the 1-minute BTC/USD differed dramatically from other major exchanges, which logged a one-minute candle with a floor of around $64,200.

The phenomenon has occurred more than frequently in recent days, with Bitstamp also seeing freak order-book events.

The scope of the Binance.US fault, however, was in a league of its own and did not go unnoticed by market participants.

"Well done Binance U.S.," popular Twitter trader Crypto Chase summarized.

"Good matter Americans are forced on to these dogshit exchanges where they tin become completely scammed on unreasonably sparse books. This type of shit just shouldn't be happening. It'due south not off-white that some become stopped out and some stay in, some get fills and some don't."
BTC/USD ane-hour candle chart (Binance). Source: TradingView

Crypto Chase referred to the implications of sudden erratic cost movements on exchanges, these serving to liquidate traders who should take retained their positions.

The debacle was tinged with irony, coming just as Binance CEO Changpeng Zhao, also known equally CZ, warned nearly incoming volatility.

"Expect very high volatility in crypto over the next few months," he tweeted on Oct. 21.

Leverage builds in overly long market

Meanwhile, concerns were also mounting on Oct. 21 that leveraged traders have taken on more than risk than they can chew.

Related: Bitcoin futures ETF hits $1B AUM in a record-breaking ii days

A look at funding rates across exchanges hints at excessive optimism, with traders going long on BTC en masse — a classic indicator of a correction.

Funding rates increased significantly in the hours after BTC/USD passed its contempo all-time loftier and went on to hit $67,100.

Bitcoin funding rates nautical chart. Source: Bybt