Seriously though, I am scared right now for my bitcoins because they're not in a non-custodial wallet and I think that this will be the final straw, I'll be contacting someone.
If i may, why should you be contacting someone, if your BTC isn't in your self custody, then immediately move it to a self custodial wallet, Electrum, Sparrow, BlueWallet are all good options for you to choose from.
I am not surprised to hear this, because some other people have also seen it that exchanges goes as far as borrowing funds before audit and return the funds after audit to deceive people that they have enough prove of reserve.
Do they even have to borrow money, they could just print their shit tokens out of this air and use it to buy assets to prove that their reserves covers all liabilities.
Binance last audit was not accepted by people because they said there is no transparency in their PoR. If Binance the biggest exchange can do this then other smaller exchanges will learn and copy from them.
Binance may be a 'big' exchange, but they are just as shady as many other centralized exchanges, with their fractional reserve and proof of reserve scam. Proof of reserve would never make sense because the exchange can do anything to balance their books and make everything good, they can show us proof of reserves without us knowing what their full liabilities are, and even if they show the liabilities, we can't be sure if it is true.