Crypto.com CEO Kris Marszalek has urged regulators to investigate exchanges following an unprecedented $20 billion in crypto liquidations — a figure that far exceeds previous market crashes, including the FTX collapse.

In a post shared on X (formerly Twitter) over the weekend, Marszalek called for “a thorough review of fairness and trading practices,” asking whether some exchanges may have slowed down, mispriced assets, or failed to uphold anti-manipulation controls during the crash.

“Regulators should look into the exchanges that had the most liquidations in the last 24 hours,” he wrote. “Did any of them slow down trading? Were all transactions priced fairly and aligned with market indexes?”

Data from CoinGlass revealed that Hyperliquid saw the largest number of liquidations, totaling $10.31 billion, followed by Bybit with $4.65 billion and Binance with $2.41 billion. Other platforms, including OKX, HTX, and Gate, faced smaller amounts ranging from $264 million to $1.2 billion.

Binance Confirms Token Depeg Triggered Losses

Binance later confirmed that a price depeg involving Ethena’s USDe, BNSOL, and WBETH tokens had caused forced liquidations for some users. The exchange stated it was reviewing affected accounts and considering “appropriate compensation measures.”

This came after several traders reported unexpected losses due to what they claimed were platform-related issues. One Binance user alleged their short position was closed entirely while the long position remained open, leading to a full account loss. The user clarified that this was unrelated to auto-deleveraging (ADL) and noted that identical trades on other exchanges survived the market crash.

Binance co-founder Yi He responded publicly, acknowledging the user complaints and apologizing for the incident. She cited “significant market volatility and a surge in trading activity” as contributing factors, adding that Binance would compensate verified cases caused by system errors — but not those resulting from normal market swings.

A Record-Breaking Liquidation Event

Crypto analyst Quinten François reported that this latest crash was the largest in crypto history. The $19.31 billion in liquidations dwarfed the $1.2 billion during the COVID-19 market shock and the $1.6 billion seen when FTX collapsed.

Geopolitical Shock: Trump Imposes 100% Tariffs on China

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.