Crypto.com CEO Urges Regulators to Probe Exchanges After $20B Liquidations; Bitcoin Market May Be Impacted

• Largest 24-hour crypto liquidation on record: nearly $20 billion wiped out

• Major platforms led by Hyperliquid, Bybit and Binance recorded the biggest losses.

• Binance confirmed a token depeg incident and is reviewing affected accounts for compensation; regulators urged to review exchange conduct.

Crypto liquidations near $20B after exchange depegs and errors; read our concise breakdown and next steps for traders.

Crypto.com CEO Kris Marszalek urged regulators to probe exchanges after a record near-$20 billion in forced crypto liquidations over 24 hours, saying platforms should be reviewed for fairness, pricing and operational integrity.

Crypto.com CEO Kris Marszalek called for a regulatory investigation into exchanges following the largest single-day losses on record, as nearly $20 billion in crypto liquidations swept the market in 24 hours.

In a public post on X, Marszalek asked regulators to “conduct a thorough review of fairness of practices,” questioning whether trading platforms slowed, mispriced assets, or lacked adequate anti-manipulation and compliance controls during the crash.

“Regulators should look into the exchanges that had most liquidations in the last 24 hours,” he 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 Hyperliquid led exchanges in liquidations with $10.31 billion in wiped positions, followed by Bybit ($4.65B) and Binance ($2.41B). OKX, HTX and Gate recorded smaller totals at $1.21B, $362.5M and $264.5M respectively.

Crypto liquidations reach nearly $20 billion. Source: CoinGlass

What caused the $20 billion crypto liquidations?

Crypto liquidations surged after rapid price moves and token depegs, notably Ethena’s USDe (USDE) and certain wrapped tokens, combined with platform-specific execution issues that forced margin positions to auto-close. Exchange outages, mispricing and concentrated leveraged positions accelerated the market wipeout.

How did exchanges and token depegs contribute?

Binance confirmed a depeg involving USDE, BNSOL and WBETH that triggered forced liquidations for affected accounts. The exchange said it is reviewing accounts and will consider appropriate compensation for verifiable platform errors. Reports from traders describe instances where one side of a position closed while the other remained, increasing realized losses.

User blames Binance for losses. Source: CoinMamba

Why are industry leaders asking for regulatory review?

Leaders like Kris Marszalek argue that the scale and concentration of liquidations demand oversight to ensure fair execution, accurate pricing and robust risk controls across exchanges. Independent data compiled by crypto analyst Quinten François shows the $19.31 billion wipeout surpassed prior crash totals by an order of magnitude, raising systemic concerns.

Frequently Asked Questions

How many crypto positions were liquidated in this event?

Approximately $19.31–$19.9 billion in positions were liquidated across exchanges in the 24-hour event, according to aggregated market trackers and exchange disclosures. Major contributors included concentrated losses on Hyperliquid, Bybit and Binance.

Will exchanges compensate users for platform errors?

Some exchanges, including Binance, have pledged to review and compensate verified cases where platform errors caused losses. Compensation is typically reserved for demonstrable execution or pricing faults, not losses from normal market volatility.

What should traders do after a major liquidation event?

Traders should review account activity, secure funds, check margin settings, and document any execution anomalies. Consider rebalancing risk exposure and monitor formal exchange communications for compensation and remediation details.

Key Takeaways

• Record-scale liquidations: Nearly $20B in forced crypto liquidations occurred within 24 hours, eclipsing prior crashes.
• Exchange conduct questioned: Crypto.com CEO Kris Marszalek and others have urged regulators to review exchange pricing and operational fairness.
• Trader action: Preserve trade logs, document anomalies and follow exchanges’ remediation channels; verified platform errors may be eligible for compensation.

Conclusion

The near-$20 billion crypto liquidation event spotlighted token depegs, market stress and potential exchange execution failures. Industry leaders, including COINOTAG sources and CEOs, are calling for regulatory reviews to ensure transparency and fairness. Traders should document issues and await formal investigation results while monitoring exchange announcements and compensation processes.