The Truth Behind the 50% Big Dump of ACT Coin! Binance's Leveraged Rule Adjustment Triggers a Chain Reaction.

Last night, ACT fell over 50% in just a few minutes, triggering a chain reaction in the market. While the initial blame was directed at the market maker Wintermute, investigations revealed that the real trigger was the exchange Binance's surprise adjustments to the contract leverage and Margin system, which led to Large Investors being liquidated and a capitulation-style dumping.

Multi-currency flash crash, ACT is the first to be hit.

Last night, ACT experienced a big dump of over 50% in the Binance perpetual contract market, becoming the biggest victim of this adjustment. Coins such as DEXE and DF also saw sharp falls of 23% and 16%, respectively.

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— Cobie (@cobie) April 1, 2025

On platform X, many traders initially blamed the large dumping by the market maker Wintermute, but the company's CEO Evgeny Gaevoy quickly denied this, stating that their selling action was a passive response to the price fall.

Wintermute Address Dynamics

Why do market makers or Binance often enter at short-term peaks? Wintermute's CEO discusses the key aspects of market making with you (

The Real Culprit: Binance Contracts Urgently Change New Rules, Liquidation and Arbitrage Bots Double Kill

Trader @CnmdRain pointed out that the leverage multiples and margin levels for multiple coins such as ACT on Binance were suddenly adjusted yesterday, directly affecting existing positions. What sparked more controversy was that this change was only announced to the market less than three hours in advance, leaving almost no room for traders and market makers who rely on high-leverage operations to respond.

He stated that the big dump in ACT prices mainly stems from liquidations following rule adjustments, leading to a market sell order of 27 million dollars in a short period. Among them, a Large Investor holding ACT was liquidated for a position worth 3.79 million dollars, which may trigger a series of dumping:

The big dump in prices simultaneously leads to a price difference between contracts and spot, attracting arbitrage bots to enter the market, buying contracts low and selling spot high, exacerbating the selling pressure in the spot market and making the price even worse.

Former FTX community manager Benson Sun stated, "Before changing the rules, Binance should first assess how many positions will be affected and notify market makers with large positions in advance."

)Redstone has temporarily suspended the listing of coins and frozen the dumping of GPS market makers. Has Binance founder He Yi entered the community to put an end to the project's PUA dilemma? (

Large Investors急退場：Capitulation式的恐慌dumping

Binance said in a follow-up investigation report that this phenomenon was due to the short-term sale of a total of $510,000 by three VIP users and $540,000 by a non-VIP user, causing sharp fluctuations in the face of poor market liquidity.

Formula News disagreed, pointing out that the report only looked at the trading data of the spot market, but the big sale was actually caused by the sale of the perpetual contract market. He pointed out that a number of ACT giants have maintained high positions in the contract market in the past few months with the intention of pulling orders, but have chosen to surrender under the double blow of no one taking over and sudden changes in rules:

Large Investors choose to dump all at once to attract incoming capital liquidity in order to reduce overall losses, instead of adopting a TWAP strategy for gradual liquidation, avoiding allowing other shorts to escape first.

DWF Labs Riding the Wave: Willing to Offer Help to Affected Projects

In this regard, another infamous market maker, DWF Labs founder @ag_dwf, stated that the simultaneous big dump of multiple unrelated tokens is quite "unusual" and promised to provide financial support to help affected projects restore their former glory:

If your project is affected by this strange incident, please contact us. We allocate funds for buybacks and develop a recovery plan for your tokens.

Colin Wu, the editor-in-chief of Wu Blockchain, pointed out that since Binance strengthened restrictions on active market makers, the market may lose some liquidity support, and the vulnerability of small-cap tokens has been amplified, making similar flash crash events likely to become the norm.

Just this morning, there was indeed a significant short-term fall in tokens such as MASK, LEVER, and KAVA, which inevitably raises concerns about whether there will be another wave of big dump.

The structure of the cryptocurrency market is being tested again.

ACT This flash crash reflects the far-reaching impact of the leverage system on market stability, and further highlights that without buffers and communication, policy changes can easily trigger a chain reaction in the market. For exchanges, transparency and risk control mechanisms will be key to gaining market trust in the future.

The truth behind the ACT coin price big dump of 50%! Binance's margin rule adjustments triggered a chain reaction, first reported by Chain News ABMedia.