$19B crash exposes CEX transparency gaps

October 13, 2025

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CEXs under fire as $19B liquidations expose data gaps

Key points:

  • Hyperliquid founder Jeff Yan accused major centralized exchanges of underreporting liquidations by up to 100 times, masking the real scale of market risk.

  • The claims surfaced amid a record $19.1 billion liquidation event, highlighting transparency differences between centralized and on-chain platforms.

News - Centralized exchanges are facing heightened scrutiny after Hyperliquid co-founder Jeff Yan warned that platforms like Binance may be drastically underreporting liquidation data.

Citing Binance’s documentation, Yan pointed out that only one liquidation order per second is included in public data streams, even when hundreds occur simultaneously. He argued that this reporting method can undercount actual events by up to 100 times during volatile periods.

CoinGlass echoed this warning, noting that “the actual total could be likely much higher” than reported figures. The timing of Yan’s remarks coincided with the market crash of October 10–11, when Bitcoin briefly fell below $105,000 and over $19 billion in positions were liquidated within 24 hours.

Coinglass reported that 1.6 million traders were affected, though the real number may be higher given reporting gaps.

Decentralization highlights a transparency divide - Yan contrasted Hyperliquid’s fully on-chain model with centralized practices.

Every trade and liquidation on Hyperliquid can be independently audited, which he argues removes opportunities for data manipulation. The platform processed $10.3 billion in liquidations during the crash without downtime, including a single liquidation worth over $203 million.

Trust concerns mount for centralized platforms - Binance faced additional criticism as users reported lags, depegging incidents, and order execution issues during the crash. While the exchange maintained that core systems remained stable, many traders claimed that stop orders froze while liquidations went through unhindered.

Calls for clearer reporting standards are intensifying, with Yan and CoinGlass urging greater transparency.

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Binance’s $283M payout meets ATH BNB rally

Key points:

  • Binance reimbursed users $283 million after the October 10 market crash triggered sharp depegging events, calling the price drops a display error.

  • BNB hit a new all-time high at $1,370 while China Renaissance and YZi Labs revealed a $600 million BNB treasury plan, signaling strong institutional backing.

News - Binance announced on Sunday that it fully compensated users impacted by the depegging of USDe, BNSOL, and wBETH during the October 10 “Black Friday” crash. The exchange clarified that the sharp price plunges were caused by a display issue rather than actual token failures.

The payout, completed within 24 hours, totaled roughly $283 million and covered users whose positions were liquidated while holding affected assets as collateral. Analysts described the reimbursement as unusual in scale and timing, interpreting it as a move to restore confidence during heightened scrutiny of centralized exchanges.

Wallet issues underscore user trust concerns - Technical glitches persisted into the following week. Binance Wallet experienced balance display issues on Monday, shortly after CZ-owned Trust Wallet reported similar problems. Some users claimed they were unable to view or sell assets during volatile price swings, raising concerns over liquidity and reliability.

According to Binance Wallet’s post on X, network congestion caused delays in balance updates, though funds remained secure. Analysts noted that users can verify their holdings through blockchain explorers during such incidents, framing the issue as infrastructure fragility under stress rather than a custody failure.

BNB’s surge and institutional tailwinds - Despite the turmoil, BNB rallied to a new all-time high of $1,370 on Monday, outperforming the broader market. The price surge followed reports that China Renaissance and YZi Labs are seeking to raise $600 million for a publicly traded BNB-focused treasury vehicle.

BNB has more than doubled in value this year and gained 5.4% over the past week, underscoring continued investor confidence in Binance’s ecosystem despite operational hiccups.

BitMine and MARA lead post-crash crypto accumulation push

Key points:

  • BitMine acquired over 200,000 ETH worth $827–$838 million during the market crash, pushing its treasury above 3 million ETH.

  • Bitcoin miner MARA purchased $46 million worth of BTC, underscoring a broader corporate buying trend after the $19 billion liquidation event.

News - Institutional players are capitalizing on last week’s historic market crash. BitMine Technologies, the largest corporate Ether holder, announced that it bought 202,037 ETH during the downturn at an average price of $4,154 per token. The $827–$838 million acquisition pushed its total holdings to more than 3 million ETH, or roughly 2.5% of Ethereum’s circulating supply.

Chairman Tom Lee framed the move as a deliberate response to volatility-driven discounts, noting that BitMine is now halfway toward its goal of cornering 5% of the ETH supply.

Blockchain data showed that newly created addresses linked to the firm withdrew over 128,000 ETH from Kraken and FalconX shortly after the flash crash. ETH briefly plunged from $4,500 to $3,500 before rebounding above $4,100 by Monday.

Strategic accumulation accelerates ETH treasury goals - BitMine’s aggressive post-crash buying lifted the total value of its ETH holdings to more than $12.5 billion. Its treasury strategy positions it as the largest publicly traded Ethereum holder and second overall after Bitcoin giant Strategy.

Shares of BitMine (BMNR) rose about 4% in pre-market trading on Monday, following a sharp drop during the sell-off.

Other corporate treasuries join the buying wave - Bitcoin mining firm MARA Holdings also moved quickly, purchasing 400 BTC worth $46.29 million through FalconX. The company now holds over 53,000 BTC, reinforcing its position as the second-largest corporate Bitcoin holder.

MARA simultaneously completed a $950 million convertible note offering to fund future BTC purchases, signaling confidence in Bitcoin’s upside potential after the tariff-induced crash.

WazirX court approval paves way for partial refunds and relaunch

Key points:

  • Singapore’s High Court sanctioned WazirX’s restructuring plan, backed by over 95% of creditors, clearing the path for repayments and platform restart.

  • Hack victims will recover about 55% of their lost funds, with trading and withdrawals set to resume within 10 business days of the scheme taking effect.

News - Singapore’s High Court has officially approved Zettai Pte Ltd’s restructuring plan for WazirX, marking a breakthrough for victims of India’s largest crypto hack. The decision follows an August re-vote in which 95.7% of creditors by number and 94.6% by value supported the revised scheme.

WazirX will now file the order with Singapore’s Accounting and Corporate Regulatory Authority. Once legally effective, the exchange plans to restart operations within 10 business days, potentially by the end of October. Token distributions to creditors will begin shortly after the relaunch.

The exchange suffered a $230–$234 million breach in July 2024, attributed to a Lazarus Group-led attack that exploited vulnerabilities in custody systems. The funds were laundered through Tornado Cash, making recovery efforts difficult.

Payout structure and creditor impact - Under the approved plan, victims will recover around 55% of their assets. Repayments will be split between approximately 52% in liquid crypto or cash and 48% in recovery tokens tied to WazirX’s future earnings.

Eligible creditors chose the restructuring plan over liquidation to accelerate recovery, avoiding a years-long legal process with uncertain outcomes.

Rebuilding trust through security upgrades and DEX plans - WazirX has partnered with BitGo to strengthen asset protection ahead of the relaunch. It also plans to launch a decentralized exchange and buy back recovery tokens periodically using future profits, aiming to rebuild user trust and comply with evolving regulatory expectations.

Founder Nischal Shetty called the ruling “a key milestone,” noting that the scheme represents one of the fastest restructurings in the global crypto industry following a major hack.

Did you know?

  • Only ~0.18% of crypto holders globally own at least one full Bitcoin, meaning fewer than two in every 1,000 participants have crossed that milestone.

  • Around 1.82 million crypto projects failed in Q1 2025 alone, accounting for nearly half of all project collapses since 2021.

  • Over 560 million people worldwide now use blockchain technology, representing roughly 3.9% of the global population.

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Top 3 coins of the day

Bittensor (TAO)

Key points:

  • TAO traded at $407 in the latest session, climbing 6.39% over the past 24 hours while extending its recovery rally.

  • The price closed above the upper Bollinger Band, while the Squeeze Momentum bars stayed bright green and expanded sharply, signaling strong bullish momentum.

What you should know:

Bittensor’s price action stayed firmly bullish after reclaiming the $400 mark, as buying pressure surged alongside a broader rebound in AI-linked cryptocurrencies. The candle’s close above the upper Bollinger Band reflected breakout strength, supported by heightened volatility and renewed investor confidence. The Squeeze Momentum Indicator confirmed this trend with bright green, expanding bars, signaling that bullish momentum continued to build following the recent selloff. Meanwhile, volume spiked significantly, underscoring strong participation from traders reentering the market. If the rally sustains, the $430–$450 range remains the next resistance zone to monitor, while maintaining support near $380 will be key for trend stability.

Key points:

  • ENA changed hands at $0.42 at press time, rising 3.66% as buyers returned after last week’s crash.

  • The price remained below the 9-day SMA while the RSI lifted from oversold territory, suggesting an early recovery phase backed by stronger trading volumes.

What you should know:

Ethena’s rebound continued after Binance resolved its technical glitch and compensated traders affected by the USDe depeg incident, restoring investor confidence in the project’s stability. The token’s RSI at 34.73 indicated relief from oversold levels, while volume surged to nearly 250 million, showing increased participation from bargain hunters. Despite the positive momentum, ENA still trades below its short-term average near $0.50, a key resistance level to monitor. Sustaining closes above $0.42 could reinforce short-term bullish sentiment, whereas any drop below $0.38 would risk invalidating the recovery setup.

Bonk (BONK)

Key points:

  • BONK was priced at $0.00001598 in the latest session, marking a 3.43% daily rise after stabilizing from the past week’s crash.

  • The 20-day MA remained below the 50-day MA, while the AO turned red with growing bars, hinting at mild bearish momentum despite stronger volumes.

What you should know:

BONK’s recovery slowed slightly after a strong two-day rebound that followed the broader market’s “Black Friday” liquidation event. The token hovered between $0.000015 and $0.000016, with intraday volumes of 2.15T BONK indicating sustained market interest. However, the MA Cross still shows a bearish alignment, suggesting bulls have more ground to reclaim. The AO’s expanding red bars pointed to persistent selling pressure, even as prices advanced, implying a possible short-term consolidation. Immediate resistance lies near $0.0000165, while support holds around $0.0000140. BONK’s next direction hinges on whether volume inflows strengthen enough to confirm a trend reversal rather than a relief bounce.

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