gm 13/10

Summary
gm, The crypto market witnessed a dramatic recovery following one of the largest liquidation events in history, where approximately $20 billion was wiped out during Friday's flash crash triggered by President Trump's China tariff announcement. Bitcoin has rebounded to around $115,000 while Ethereum led the recovery with a 10.5% gain to $4,130. Binance announced it will compensate users affected by technical issues during the crash, pledging over $280 million after several tokens, including Ethena's USDe stablecoin, temporarily lost their pegs. Easing U.S.-China trade tensions have contributed to the market recovery, with both nations signaling willingness to resume negotiations, though funding rates remain at three-year lows, indicating potential for a short squeeze if positive momentum continues.

News Headlines
⚠️ Ethena Founder Attributes USDe Depeg to Binance Oracle Issues

• Guy Young, Ethena Labs founder, revealed the USDe depegging on Binance was due to the exchange using internal orderbook data rather than external price feeds, causing major price discrepancies.
• The situation was reportedly worsened by a coordinated attack exploiting Binance's 'Unified Account' feature that allowed attackers to offload large amounts of USDe, resulting in cascading liquidations across the platform.

📉 AAVE Price Crashes 64% During Protocol's "Largest Stress Test"

• AAVE's native token plummeted 64% from $270 to $100 before rebounding 140% to nearly $240 within one day, in what founder Stani Kulechov described as the protocol's "largest stress test."
• The protocol successfully processed $180 million in liquidations without human intervention, demonstrating the resilience of its infrastructure while managing extreme market conditions.

🕵️ Astaroth Banking Trojan Using GitHub to Steal Crypto Credentials

• McAfee has uncovered a new Trojan campaign called Astaroth that uses GitHub to redirect operations to new servers whenever existing ones are shut down, primarily targeting South American users.
• The keylogging malware exfiltrates banking and cryptocurrency credentials through phishing emails that prompt victims to download malicious Windows files, using Ngrok as an intermediary to transmit stolen information.

🧠 AI Models Become More Risk-Averse When Prompted to Think as Women

• New research from Allameh Tabataba'i University reveals that AI language models significantly change their risk tolerance based on gender prompts with DeepSeek and Google's Gemini showing increased risk aversion when asked to think as women.
• The findings highlight concerns about AIs potentially reinforcing societal biases in high-stakes fields such as finance, underscoring the need for evaluating AI behavior to ensure it reflects human diversity without amplifying stereotypes.

🔍 Investigation Links 100,000 BTC Hyperliquid Whale to Former BitForex CEO

• Crypto researcher Eye has connected the Hyperliquid whale controlling over 100,000 BTC to Garrett Jin, former CEO of BitForex, through wallet address analysis linking ereignis.eth to garrettjin.eth.
• The whale's transaction history aligns with Jin's business activities, raising concerns about his business integrity given BitForex's history of alleged volume falsification and fraud investigations.

Market Metrics

Fundraising & VC
1. Rhuna (Seed, $2M) - White-label Web3-powered event management infrastructure
2. Binance Japan (M&A, Undisclosed) - Japanese subsidiary of Binance

Regulatory
🏛️ EBA Warns of Risks in MiCA Transitional Period

• The European Banking Authority has flagged concerns about crypto firms potentially bypassing regulatory requirements during MiCA's transitional phase until 2026.
• The agency highlighted "forum shopping" where firms seek approval in less stringent EU countries and warned about complex ownership structures of some VASPs that could enable illicit activities.

⚖️ White House Considering Pardon for Binance's CZ

• The Trump administration is reportedly considering pardoning Binance founder Changpeng Zhao, who served four months in prison after pleading guilty to Bank Secrecy Act violations.
• Trump insiders reportedly believe CZ's case was weak and didn't warrant felony charges, though concerns about political optics given Trump's crypto business interests could complicate the decision.

🤝 US-China Signal Trade Negotiation Willingness

• China's Ministry of Commerce expressed readiness to enhance dialogue on trade issues and consider licensing exemptions for rare earth minerals exports.
• President Trump made conciliatory remarks about wanting to help rather than hinder China's economy, prompting optimism that easing trade tensions could positively impact markets.

🧮 "Display Issue" Behind Binance Token Crash

• Binance clarified that tokens did not actually crash to $0 during recent market volatility, attributing the appearance to a "display issue" affecting trading pairs.
• The exchange announced $283 million in compensation for affected users, while acknowledging that the incident led to major liquidations and potential market contagion.

💻 Bitcoin Core v30 Released With Controversial Update

• Bitcoin Core v30 increases the OP_RETURN data limit from 80 bytes to 100,000 bytes, allowing more non-financial data in transactions and potentially enabling more complex decentralized applications.
• The update has divided the community, with critics concerned it undermines Bitcoin's role as digital cash and could lead to blockchain bloat.

Technical Analysis
Bitcoin - Bitcoin is within an approximate horizontal trend channel in the short term, which indicates further development in the same direction. The currency is between support at points 113400 and resistance at points 115600. A definitive break through of one of these levels predicts the new direction. The currency is assessed as technically neutral for the short term.

Ethereum - Ethereum is within an approximate horizontal trend channel in the short term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The currency is between support at points 3960 and resistance at points 4300. A definitive break through of one of these levels predicts the new direction. The currency is assessed as technically slightly negative for the short term.