Bitfinex? Can't remember if there was anyone else doing the same thing but I cna imagine some in the background have faced bigger funding and liquidity problems than they've reported (including Binance).

[quote author=The Pharmacist link=topic=5420084.msg61267463#msg61267463 date=1668049400
As far as the "don't use a token you created as collateral" statement goes, I don't know whether to agree or disagree with that, because I don't think it matters so much who created a token used as collateral as it does the token's volatility and/or potential to drop like a stone if put under enough pressure.  And frankly, using anything other than a stablecoin as collateral is extremely risky.  Even bitcoin is notoriously volatile, and just look at what would have happened had you used it to secure a loan last month or even last week.  Yikes.
[/quote]

I thought binance had a buyback system in place with their token too so this might have lead to a similar problem anyway (not sure if this is just rumours though or if they've changed their mind on propping up their own token - a lot of people used to see that token as a direct investment in binance too).

Edit: looks like they were just randomly buying back tokens.