OKX Founder Accuses Ethena's USDe of Causing October Market Crash, Traders Dispute Claims

The founder of cryptocurrency exchange OKX, Star Xu, has publicly attributed the significant market downturn in October to the actions of Ethena Labs and its synthetic dollar stablecoin, USDe. Xu suggested that large-scale unwinding of positions related to USDe triggered a cascade of liquidations, exacerbating the market crash. However, this assertion has been met with strong pushback from segments of the trading community. Critics and data analysts argue that the market collapse was a result of broader macroeconomic pressures and excessive leverage across the crypto ecosystem, rather than the direct fault of a single protocol. The debate highlights ongoing tensions regarding the risks and systemic impacts of innovative DeFi instruments like algorithmic stablecoins in volatile market conditions.