This is a Binance problem, not a USDC problem. Now if Coinbase were to not honor USDC withdrawals or swaps to normal USD, it would be fair to say somwthing is wrong with USDC, but that is not the case here.

If you give me 100 USDC and I pinky promise to give them back but then I don't, whose fault is it? USDC's?

They are one of the exchanges prominently listed by Circle as part of its ecosystem. Of course the fine print says that they don't endorse any of the companies they list, but what does it say about the ecosystem if they can't even list one trustworthy partner and instead list groups they explicitly don't trust themselves?

Honest coin salesman: Look you want to trade honest coins? Down that alley is seedy Joe he is one of the local traders, on a good day there is only a 50% chance that he will mug you.

Really it depends on why you didn’t / couldn’t.

It doesn't, if I give exchange a coin, no matter it's relative value fluctuations to other assets I should still be able to withdraw the same coin back.

What if they are stolen from you

Maybe that's why they can't print it out of thin air...

SBF was supposed to be the good guy. FTX was supposed to be the good exchange.

It’s crypto. It’s made of lies.