Analysis: The ACT flash crash is caused by Binance adjusting the leverage position limit of ACT, and the excess positions of market makers are closed at market prices

BlockBeats News: On April 1st, Benson Sun, a cryptocurrency KOL and former FTX community partner, posted an analysis on social media, stating that "at 18:30 today, ACT suddenly collapsed by 50%. The reason was that Binance adjusted ACT's leverage position limit, and a maximum of $4.5 million can be opened with double leverage. Some market makers' positions exceeded the limit and were directly liquidated by the market price. After the contract price collapsed, there was a huge price difference with the spot, and the spot also collapsed along with it. The announcement from Binance was made at 15:32 on April 1st, with an effective date of 18:30 on the same day. The user response time was less than 3 hours. What's even more outrageous is that on March 31st, Binance had already announced the modification of ACT's position limit, and on April 1st, the position limit for low leverage was reduced by 50%. Before modifying the rules, Binance should first assess how many positions will be closed. If there are market makers with large positions, they should also be notified in advance. As an industry leader, we hope Binance can handle this incident properly