Crypto.com CEO Kris Marszalek has called for a regulatory review of crypto exchanges following an unprecedented $20 billion in market liquidations within just 24 hours. In a post on X (formerly Twitter) on Saturday, Marszalek urged authorities to “conduct a thorough review of fairness of practices,” questioning whether trading platforms had malfunctioned or failed to uphold compliance during the sell-off. “Regulators should look into the exchanges that had most liquidations in the last 24 hours,” Marszalek 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 the market with $10.31 billion in liquidations, followed by Bybit with $4.65 billion and Binance with $2.41 billion. Other platforms including OKX, HTX, and Gate reported smaller figures of $1.21 billion, $362.5 million, and $264.5 million, respectively. Binance faces backlash after user losses The wave of forced liquidations came alongside a separate issue at Binance, where several tokens—including Ethena’s USDe, BNSOL, and WBETH—experienced a price depeg, triggering unexpected losses for some traders. Binance said it is reviewing affected accounts and will offer “appropriate compensation measures” where platform errors are confirmed. One trader claimed that the exchange mistakenly closed a short position while keeping a long open, resulting in total losses. The user argued the issue was unrelated to Binance’s auto-deleveraging system and noted that similar trades on other platforms had not been affected. Binance co-founder Yi He publicly apologized, acknowledging the “significant market fluctuations and a substantial influx of users.” She confirmed that Binance will compensate users for losses caused by confirmed technical errors but clarified that “losses resulting from market fluctuations and unrealized profits are not eligible.” Crypto market wipeout surpasses historical crashes According to data compiled by crypto analyst Quinten François, the recent $19.31 billion in liquidations surpassed previous market downturns by a wide margin. For comparison, the COVID-19 crash saw $1.2 billion in liquidations, while the FTX collapse led to $1.6 billion—making the latest event more than ten times larger than any prior wipeout. Trump’s tariffs spark fresh market volatility The timing of the crash coincided with U.S. President Donald Trump’s announcement of new economic measures, including 100% tariffs on all Chinese imports beginning November 1. The move was a response to China’s recent restrictions on rare earth mineral exports, which are essential to global manufacturing and technology sectors. Beijing stated that any product containing more than 0.1% Chinese rare earth content will require an export license starting December 1. Trump denounced the policy as “a moral disgrace” and suggested he might cancel a planned meeting with Chinese President Xi Jinping at the APEC summit. The combination of geopolitical tension, unprecedented liquidations, and technical issues across major exchanges has reignited concerns about the stability and transparency of the cryptocurrency market—raising pressure on regulators to ensure fair trading practices in a rapidly evolving landscape.
