Hyperliquid, Bybit, and Binance Lead Losses
Data from CoinGlass shows that decentralized derivatives exchange Hyperliquid accounted for the bulk of losses, with $10.31 billion in liquidated positions. Bybit followed with $4.65 billion, while Binance recorded $2.41 billion. Other major venues, including OKX, HTX, and Gate.io, saw smaller totals between $264 million and $1.2 billion.
The $19.3 billion wiped out in the rout dwarfed previous downturns in crypto markets, according to analyst Quinten François. The total liquidation figure was more than ten times the scale of the selloffs triggered by the COVID‑19 crash ($1.2 billion) and the collapse of FTX in 2022 ($1.6 billion).
Binance later acknowledged that a “price depeg” involving Ethena’s USDe stablecoin, BNSOL, and WBETH had caused forced liquidations for some traders. The exchange said it was reviewing affected accounts and evaluating “appropriate compensation measures.”
Reports quickly surfaced from users alleging that technical issues compounded their losses. One trader claimed Binance closed their short position while leaving their long open, wiping out their balance. The user said the malfunction was unrelated to the exchange’s auto‑deleveraging system and noted that similar trades on rival platforms remained intact.
Binance co‑founder Yi He issued a public apology, citing “significant market fluctuations and a substantial influx of users.” She said Binance would reimburse traders if confirmed platform errors caused their losses but clarified that “losses resulting from market movements or unrealized profits are not eligible.”
Marszalek’s comments reflect growing tension between major exchanges as volatility again exposes weak points in crypto trading infrastructure. Regulators in the U.S., Europe, and Asia have intensified oversight of digital asset markets following repeated blowups tied to opaque leverage and illiquidity.
While exchanges tout advanced risk systems, periods of extreme volatility have repeatedly tested their limits. Slowed order books, frozen withdrawals, and delayed liquidation engines have fueled user anger — and occasionally, class‑action threats.
Marszalek’s call for an independent review signals an attempt to distance Crypto.com from potential criticism as traders hunt for accountability after one of the largest single‑day wipeouts in crypto history.
Tariff Shock Sparks Market Rout
The cascade of liquidations followed a sharp macro shock. Bitcoin and broader crypto assets plunged after U.S. President Donald Trump announced plans to impose 100% tariffs on all Chinese imports starting Nov. 1. The move came in response to Beijing’s new export restrictions on rare earth minerals — critical materials for electric vehicles and semiconductors.
China, which produces around 70% of the world’s rare earths, said products containing more than 0.1% of the minerals would now require export licenses, effective Dec. 1. Trump denounced the policy as “a moral disgrace” and hinted at scrapping a planned meeting with President Xi Jinping at next month’s APEC summit.
The tariff shock ricocheted through risk assets, with leveraged crypto positions unwinding en masse as funding rates flipped negative across major derivatives venues. Bitcoin dropped nearly 15% before clawing back some losses in late trading.
The $20 billion liquidation wave stands as the largest ever recorded in the digital asset market — a reminder that even as crypto matures, its infrastructure remains vulnerable to sudden shocks and liquidity vacuums.
As Marszalek’s post reverberated through the industry, one trader summed up the sentiment in a reply: “Exchanges made billions in fees while traders got nuked. Time for someone to check the books.”