Crypto.com CEO Chris Marszalek called for a regulatory investigation into the exchange that suffered the biggest losses following a record $20 billion in crypto liquidations in the past 24 hours.
In a post on X on Saturday, Marszalek urged regulators to “conduct a thorough review of the fairness of trading” and asked whether trading platforms slowed down, mispriced assets, or failed to maintain proper anti-manipulation and compliance controls during the crash.
“Regulators should investigate the exchanges that had the most liquidations in the past 24 hours,” he said. “Have any of them slowed down and stopped, essentially not allowing people to trade? Were all the trades priced correctly and in line with the index?”
Hyperliquid led all exchanges in liquidations, recording $10.31 billion in extinguished positions, according to CoinGlass data. This was followed by Bybit with $4.65 billion and Binance with $2.41 billion. Other major platforms such as OKX, HTX, and Gate had total sales of $1.21 billion, $362.5 million, and $264.5 million, respectively.
Cryptocurrency liquidation amounts to nearly $20 billion. Source: Coinglass
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Binance confirms token depeg caused user liquidation
In an announcement, Binance acknowledged that the price depegging incident involving Ethena’s USDe (USDE), BNSOL, and WBETH led to the forced liquidation of some users. The exchange said it was considering the affected accounts and “appropriate compensation measures.”
The announcement comes after some users reported losses due to platform errors. One Binance trader claimed that the exchange completely closed out his short positions while leaving his long positions open, leading to a total loss. The user said the issue was not related to automatic deleveraging (ADL) and pointed out that similar trades had survived the crash on other platforms such as Lighter and Extended.
Users are blaming Binance for their losses. sauce: coin mamba
Binance co-founder Yi He also acknowledged user complaints in a public apology, citing “significant market fluctuations and large influx of users” as the reason. He said Binance will cover verified cases where platform errors caused losses, but stressed that “losses due to market fluctuations or unrealized profits are not covered.”
The recent devastation in the cryptocurrency market has overshadowed any previous downturn, according to data compiled by cryptocurrency analyst Quinten Francois. The $19.31 billion liquidation amount is more than 10 times the losses seen during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
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President Trump imposes 100% tariffs on imports from China
The recent market selloff came after US President Donald Trump announced plans to impose 100% tariffs on all imports from China starting November 1 in response to China's new export restrictions on rare earth minerals.
China, which supplies about 70% of the world's rare earth minerals, recently declared that products containing more than 0.1% of Chinese rare earths must have an export license. The measure is scheduled to come into effect on December 1st.
President Trump criticized the Chinese government's policies as a “moral disgrace” and threatened to cancel a meeting with President Xi Jinping scheduled for the upcoming APEC summit.
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