Sorry I typed too quickly. People can and do expect Binance to be /custodians/.
> Conversions were announced timely.
Yes. Without consent of customers, or even any confirmation from customers that they'd read of and were aware of their coins being swapped for a different currency backed by a different organisation.
> Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts
No. The logical conclusion of people expecting Binance to hold full USDC deposit amounts is a 1:1 USDC holding, not to have a second BUSD copy of every coin. This is a bizarre straw man.