Kris Marszalek, CEO of Crypto.com, has requested a regulatory probe into exchanges that experienced the most significant losses after a staggering $20 billion in crypto liquidations occurred within the last 24 hours.
In a post on X this Saturday, Marszalek called for regulators to “conduct a thorough review of fairness of practices,” questioning whether trading platforms had halted operations, mispriced assets, or neglected adequate anti-manipulation and compliance measures during the downturn.
“Regulators should investigate the exchanges that faced the most liquidations in the last 24 hours,” he stated. “Did any of them come to a standstill, effectively preventing people from trading? Were all trades accurately priced and consistent with indexes?”
According to data from CoinGlass, Hyperliquid topped the list of exchanges with liquidations, totaling $10.31 billion in positions wiped out. Bybit followed with $4.65 billion, and Binance recorded $2.41 billion. Other significant platforms like OKX, HTX, and Gate saw smaller figures, at $1.21 billion, $362.5 million, and $264.5 million, respectively.
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Binance confirms token depeg led to user liquidations
In an announcement, Binance acknowledged that a price depeg incident affecting Ethena’s USDe (USDE), BNSOL, and WBETH resulted in forced liquidations for several users. The exchange has stated it is examining the impacted accounts and “appropriate compensation measures.”
This announcement followed several user reports of financial losses due to platform errors. One Binance trader claimed that the exchange fully closed their short position while leaving their long position active, culminating in a total loss. The user emphasized that this issue was not attributed to auto-deleveraging (ADL) and noted that similar trades on other platforms, like Lighter and Extended, managed to survive the crash.
Binance co-founder Yi He also recognized user grievances in a public apology, attributing them to “significant market fluctuations and a substantial influx of users.” She mentioned that Binance would provide compensation where legitimate platform errors led to losses but stressed that “losses arising from market fluctuations and unrealized profits do not qualify.”
Data compiled by crypto analyst Quinten François indicates that the latest mass liquidation in the crypto market has surpassed all previous downturns. The $19.31 billion in liquidations is more than ten times the losses witnessed during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
Related: Bitcoin may experience ‘volatility’ amid Trump tariff concerns
Trump imposes 100% tariffs on Chinese imports
The recent market collapse ensued after US President Donald Trump unveiled plans to implement 100% tariffs on all Chinese imports starting November 1, in reaction to China’s new export limitations on rare earth minerals.
China, which accounts for approximately 70% of the world’s rare earth minerals, recently announced that any product containing more than 0.1% Chinese rare earths would require an export license. This regulation is set to commence on December 1.
Trump criticized Beijing’s measure as “a moral disgrace” and suggested he might cancel a planned meeting with President Xi Jinping during the upcoming APEC summit.
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