The biggest crypto liquidation event on record has sparked calls for accountability across the industry.
After nearly $20 billion in leveraged positions vanished within 24 hours, Crypto.com CEO Kris Marszalek urged regulators to investigate how major exchanges handled the meltdown, questioning whether trading systems slowed, mispriced assets, or failed to protect users.
CoinGlass data shows Hyperliquid saw over $10 billion in forced liquidations, followed by Bybit with $4.6 billion and Binance with $2.4 billion. The uneven distribution of losses, Marszalek argued, raises concerns about fairness and platform integrity during moments of extreme volatility.
Adding to the controversy, Binance confirmed that a depegging incident involving Ethena’s USDe, BNSOL, and WBETH tokens caused some users to be liquidated. Co-founder Yi He apologized and promised compensation for verified cases linked to platform errors, though she clarified that normal market losses would not qualify.
Analysts described the crash as unprecedented – roughly ten times larger than liquidations during the 2020 pandemic or the FTX collapse. Traders reported frozen order books and delayed executions, with some claiming their positions were forcibly closed while similar trades on other exchanges survived.
The chaos followed President Donald Trump’s announcement of sweeping 100% tariffs on Chinese imports, a move that reignited fears of a global trade war. China’s new export controls on rare earth minerals only worsened sentiment, sending risk assets tumbling.
Marszalek’s demand for a regulatory review reflects growing unease over how exchanges manage high-stress events. As markets stabilize, the focus is shifting from the price crash to deeper questions about transparency, reliability, and the future oversight of the world’s largest crypto trading platforms.
