After a record-breaking $20 billion in leveraged positions was wiped out in less than 24 hours, Crypto.com CEO Kris Marszalek has called for an official investigation into how major exchanges handled the market collapse.
His comments come amid growing scrutiny over whether trading platforms suffered technical breakdowns, mispriced assets, or failed to adequately protect users during the violent selloff.
According to CoinGlass data, the brunt of the damage was concentrated on Hyperliquid, which recorded more than $10 billion in forced liquidations, followed by Bybit with $4.6 billion and Binance with $2.4 billion.
Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices. Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?… pic.twitter.com/UCD6iKuKFQ
— Kris | Crypto.com (@kris) October 11, 2025
Marszalek said the uneven distribution of losses raises questions about the fairness and reliability of liquidation mechanisms under extreme volatility. “In times like these, transparency matters most,” he said, adding that regulators must assess whether systemic safeguards functioned as intended.
The turmoil deepened after Binance confirmed a temporary depegging involving Ethena’s USDe, BNSOL, and WBETH tokens, an event that caused unexpected liquidations on the platform. Co-founder Yi He publicly apologized, promising compensation for users who suffered verified losses due to platform malfunctions, while clarifying that normal market-driven losses would not be reimbursed.
Analysts described the crash as ten times larger than previous stress events such as the FTX collapse or the March 2020 COVID-driven selloff, as frozen order books and delayed executions left traders unable to respond in real time. Some users reported that their positions were forcibly closed on one exchange while identical trades elsewhere remained intact, suggesting inconsistent risk controls across platforms.
The flash crash was triggered shortly after President Donald Trump’s announcement of 100% tariffs on Chinese imports, which reignited fears of a renewed trade war. China’s subsequent move to tighten rare earth export controls further worsened sentiment, sending risk assets across markets into freefall.
Marszalek’s demand for oversight underscores a shifting narrative: beyond price action, the focus is now on exchange accountability. As liquidity returns and prices recover, regulators face mounting pressure to examine whether crypto trading infrastructure can withstand, or inadvertently worsen, the next wave of global market shocks.