The market maker Wintermute faced turmoil after selling large quantities of ACT and other memecoins on April 1, causing a price drop of up to 50%. Allegations suggest Binance lowered leverage limits for these tokens, which might have led to automatic liquidations.

Wintermute's CEO denied deliberate sales and started repurchasing ACT. The questioning moves have raised suspicions within the crypto community, suggesting Binance's silent rule changes might be involved.

Yi He, Binance's co-founder, mentioned preparing a detailed response. The incident highlights potential risks associated with crypto exchange policies, affecting market confidence.