Crypto.com CEO Kris Marszalek has called for a regulatory investigation into exchanges that suffered the largest losses following a record $20 billion in crypto liquidations over the past 24 hours.
In a Saturday post on X, Marszalek urged regulators to “conduct a thorough review of fairness of practices,” asking whether trading platforms had slowed down, mispriced assets, or failed to maintain proper anti-manipulation and compliance controls during the crash.
“Regulators should look into the exchanges that had most liquidations in the last 24 hours,” he wrote. “Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?”
Data from CoinGlass shows that Hyperliquid led all exchanges in liquidations, recording $10.31 billion in wiped-out positions. It was followed by Bybit with $4.65 billion, and Binance with $2.41 billion. Other major platforms like OKX, HTX and Gate saw smaller totals, at $1.21 billion, $362.5 million and $264.5 million, respectively.
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Binance confirms token depeg triggered user liquidations
In an announcement, Binance confirmed a price depeg incident involving Ethena’s USDe (USDE), BNSOL and WBETH led to forced liquidations for some users. The exchange said it is reviewing the affected accounts and “appropriate compensation measures.”
The announcement came after some users reported loss due to platform errors. One Binance trader claimed the exchange fully closed their short position while leaving their long open, leading to a total loss. The user said the issue was not related to auto-deleveraging (ADL) and noted that similar trades on other platforms, such as Lighter and Extended, survived the crash.
Binance co-founder Yi He also acknowledged user complaints in a public apology, citing “significant market fluctuations and a substantial influx of users.” She said Binance would compensate verified cases where platform errors caused losses but emphasized that “losses resulting from market fluctuations and unrealized profits are not eligible.”
According to data accumulated by crypto analyst Quinten François, the latest crypto market wipeout has eclipsed every previous downturn. The $19.31 billion in liquidations is more than ten times the losses seen during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
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Trump slaps 100% tariffs on Chinese imports
The recent market meltdown came after US President Donald Trump announced plans to impose 100% tariffs on all Chinese imports starting Nov. 1 in response to China’s new export restrictions on rare earth minerals.
China, which supplies roughly 70% of the world’s rare earth minerals, recently declared that any product containing more than 0.1% Chinese rare earths would require an export license. The measure is set to take effect Dec. 1.
Trump criticized Beijing’s policy as “a moral disgrace” and hinted at canceling a planned meeting with President Xi Jinping at the upcoming APEC summit.
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