In today’s crypto news, following a significant crash over the weekend, Hyperliquid CEO Jeff Yan and data platform CoinGlass cautioned that the liquidation reporting methods employed by centralized exchanges like Binance could significantly underreport actual liquidations. Additionally, the US government has now entered its third week of shutdown, leaving 16 crypto ETFs in limbo, while US and Chinese representatives have indicated a potential easing of trade tensions.
Centralized exchanges face claims of massive liquidation undercounts
Jeff Yan, co-founder and CEO of Hyperliquid, stated that the reporting practices of centralized crypto exchanges, particularly Binance, likely undercount liquidations.
This past Friday, Bitcoin (BTC) dropped to $102,000 following US President Donald Trump’s announcement of extensive tariffs on China, while Ether (ETH) fell to $3,500 and Solana (SOL) sunk below $140 during a broad market sell-off.
According to CoinGlass data, Friday witnessed $16.7 billion in long liquidations and $2.456 billion in short liquidations, marking the largest liquidation event in crypto history.
In a Monday post on X post, Yan highlighted a documentation page from Binance that explains the platform only records the latest liquidation occurring in each second interval within the order snapshot stream.
This stream provides real-time updates about force-liquidated positions. While this batching allows for enhanced performance, Yan explained that reporting only the most recent liquidation can lead to significant underreporting during mass liquidation events, as the platform processes over 100 liquidations per pair every second.
“Since liquidations happen in bursts, this could easily result in underreporting by a factor of 100 under certain conditions,” Yan stated.
His remarks mirrored a Saturday X post from CoinGlass, which asserted that “the actual [liquidated] amount was likely much higher” due to Binance only reporting one liquidation order per second.
US gov shutdown enters third week with ETF “floodgates” ready to burst
The US federal government has now entered its third week of shutdown, leaving as many as 16 exchange-traded funds (ETFs) pending approval, should the shutdown extend into November.
The majority of US government operations halted on October 1, due to a failure between Republicans and Democrats to reach a funding agreement. This has forced agencies, including the US Securities and Exchange Commission (SEC), which approves ETF applications, to operate with only essential personnel.
The crypto industry was preparing for a wave of ETFs in October, with the SEC expected to deliver final decisions on at least 16 crypto ETFs, alongside another 21 applications submitted in the first eight days of October. However, the shutdown has resulted in everything being stalled, with deadlines passing without any action taken.
To resolve the shutdown, both chambers of Congress must pass legislation to fund the government. Once the bills are approved, President Donald Trump can sign them into law, ending the shutdown.
US and China representatives signal easing trade tensions
Representatives from the United States and China have begun to soften their previously harsh rhetoric regarding trade policies after tensions escalated this week due to China’s export controls on rare earth minerals and Trump’s announcement of an additional 100% tariff on China.
On Sunday, China’s Ministry of Commerce expressed a willingness to negotiate over the rare earth export control proposal and other trade matters, coinciding with a statement from Trump. In a post on Truth Social, Trump stated:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
Market analysts indicated that signs of de-escalation from Trump could boost financial markets on Monday, potentially reversing the price declines that affected crypto markets over the weekend.
