More than 30 funding-rate arbitrage positions belonging to a trader named “xunlu” on Binance were forcibly liquidated in rapid succession within minutes. The wave of liquidations that erupted on September 3, 2026, at around 05:44 WIB triggered a total claimed loss exceeding 5 million USDT.
This cascade of liquidations was triggered by the price of AKEUSDT perpetual contracts skyrocketing from an initial range of $0.0076 to $0.045. The asset posted a 492% surge, nearly a sixfold increase in an instant. To the trader, such an extreme move could not have occurred organically. Xunlu alleged that market actors orchestrated price manipulation in the AKE market - a planned short squeeze designed to wipe out the positions.
Contract Fate Tied to External Exchanges
Binance Customer Support refuted the allegations of price manipulation. The exchange denied any internal irregularities and highlighted that similar price swings were also recorded across several competing exchanges and on-chain markets during the incident.
Binance itself does not offer spot trading for the AKE token. As a result, the mark price - the benchmark for liquidation thresholds on AKEUSDT perpetual contracts - is calculated using aggregated spot data from external exchanges. This pricing model directly exposes perpetual positions on Binance to liquidity fluctuations on outside platforms.
An internal review by the exchange’s management found no system malfunctions. The Binance team reported that the pricing model structure, risk control thresholds, and liquidation execution engine all operated according to standard parameters. The company maintains that the 5 million USDT loss was purely the result of AKE market volatility, not technical flaws on the platform.
Demanding Internal Log Transparency
The exchange’s explanation has done little to quell xunlu’s pushback. The trader urged Binance to release raw trading logs, the liquidation sequence order, and complete risk control records so the transaction flow can be directly audited.
As of press time, no regulatory agency or independent investigative team has stepped in to probe the alleged AKE price manipulation. This unresolved dispute serves as a stark reminder for large-scale arbitrageurs: when millions of dollars vanish in sudden market moves, clarity often rests solely on data held unilaterally by the exchange.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
