Crypto liquidations have become a hot topic this week. Many analysts believe that centralized exchanges may hide key details in their reports. Let’s break it down.
Hyperliquid CEO Jeff Yan and platform CoinGlass believe that major exchanges like Binance may be underestimating crypto liquidations.
Largest Cryptocurrency Liquidation Event
Last Friday, the crypto market experienced one of its biggest crashes to date. Bitcoin (BTC) plunged from $111,797 to $102,000 after US President Donald Trump announced new tariffs on China. Ether (ETH) fell to $3,500 and Solana (SOL) fell below $140.
The largest liquidation event in crypto history.
In the last 24 hours, 1,618,240 traders were liquidated, with a total liquidation amount of $19.13 billion.
The actual total is probably much higher… #Binance only reports one liquidation order per second.… pic.twitter.com/tvMCILVgU0
– CoinGlass (@coinglass_com) October 10, 2025
CoinGlass reported that traders experienced the highest amount of crypto liquidations on record, totaling $19.1 billion. But according to Yan, these figures are much higher. Yan, in an article on In times of extreme market chaos, hundreds of liquidations can take place every second, likely leaving many behind.
“Liquidations come in bursts, leading to underreporting by up to 100 times,” Yan said. CoinGlass agreed, stating that Binance’s system was likely missing a significant portion of the actual liquidation data.
Hyperliquid’s fully on-chain liquidations cannot be compared to undervalued CEX liquidations
Hyperliquide is a blockchain where every order, transaction and liquidation takes place on-chain. Anyone can check the execution of the chain without authorization, including all liquidations and their… pic.twitter.com/K5sv74LJgO
– jeff.hl (@chameleon_jeff) October 13, 2025
Centralized platforms struggle under pressure
Binance faced heavy criticism after the flash crash. When liquidating their positions, many traders reported frozen buttons and failed stop orders. Binance later blamed the display issue on a temporary glitch. They said some trading pairs were showing zero price due to decimal changes.
CEO Yi He insisted that Binance maintain a stable core system. However, she admitted that some features were late and a few products briefly lost their footing. They then paid out more than $280 million to affected users.
Due to significant market fluctuations over the past 16 hours and a large influx of users, some users experienced issues with their transactions. I deeply apologize for this. If you have suffered losses attributable to Binance, please contact our customer service to…
– Yi He (@heyibinance) October 11, 2025
DeFi Shows Strength During Chaos
Centralized exchanges were failing, but decentralized finance (DeFi) platforms were still holding on. USDe retained its foothold on Curve after falling on Binance and Bybit. The Hyperliquid team reported no downtime, saying this proved that decentralized systems can handle extreme volatility.
TL;DR: USDe has not gone haywire, unlike Binance.
USDe saw its price drop to around $0.65 on Binance during the October 10 market crash. People called this a depeg. This was not the case.
> Binance’s order book oracle used its own spot prices instead of relying on global LPs
> When deposits &…– YashasEdu (@YashasEdu) October 13, 2025
Conclusion
The recent crash may imply that crypto liquidations could be much larger than those reported on centralized exchanges. As traders seek transparency, DeFi platforms could gain more trust. Now more than ever, traders need to understand how to track crypto liquidations.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is intended for educational, entertainment and informational purposes only. Any opinions or strategies shared are those of the editors/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets; therefore, perform thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
The article Centralized Exchanges May Understate Crypto Liquidations appeared first on Altcoin Buzz.
