Crypto CEO Urges Regulatory Probe After Record $25B Liquidations in Crypto Market

By: crypto insight|2025/10/13 13:10:01
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In the fast-paced world of cryptocurrencies, market crashes can feel like a sudden storm wiping out everything in its path. Imagine building a sandcastle only to see a massive wave crash down— that’s how traders felt recently when over $25 billion in positions got liquidated in just 24 hours, according to the latest data from CoinGlass as of October 13, 2025. This staggering figure dwarfs previous downturns, making it a wake-up call for the entire industry. Crypto.com’s CEO, Kris Marszalek, didn’t hold back, publicly calling for regulators to dive deep into exchange practices to ensure fairness and prevent such chaos from repeating.

Why the Push for Investigation into Crypto Exchanges?

Picture this: during a market frenzy, your trading platform slows to a crawl, prices glitch out of sync, or anti-manipulation safeguards fail just when you need them most. That’s the nightmare Marszalek highlighted in his October 2025 post on X, urging authorities to scrutinize exchanges hit hardest by these liquidations. He questioned if platforms maintained proper controls, priced trades accurately against indexes, or even allowed seamless trading amid the turmoil. This isn’t just about pointing fingers; it’s about building a more resilient crypto ecosystem where investors aren’t left high and dry.

Data backs this up—recent analytics show these liquidations surpassed even the infamous FTX collapse in 2022, which saw about $1.6 billion wiped out, and the COVID-19 market dip with $1.2 billion in losses. The scale here is unprecedented, with long positions bearing the brunt at around $22 billion, while shorts accounted for the rest. Marszalek’s call resonates because it echoes what many traders have whispered: without better oversight, these events could erode trust in cryptocurrencies altogether.

Exchanges Under the Spotlight Amid Price Depegs

Adding fuel to the fire, recent incidents involving stablecoin-like assets depegging from their values triggered forced liquidations for countless users. Think of it like a car’s brakes failing on a steep hill—sudden and disastrous. Platforms have acknowledged these glitches, with some promising reviews of affected accounts and compensation where errors are verified. However, they stress that pure market volatility losses don’t qualify, drawing a line between technical failures and the inherent risks of trading altcoins and cryptocurrencies.

This ties into broader discussions on social media. On Twitter (now X), users have been buzzing about “crypto liquidation aftermath” with trending topics like #CryptoCrash2025 gaining millions of impressions as of October 13, 2025. Posts from analysts like Quinten François highlight how this event eclipses past crashes, sparking debates on regulatory needs. Frequently searched Google queries, such as “how do crypto liquidations work” and “best ways to avoid liquidation in crypto,” reflect growing user anxiety, with search volumes spiking 150% in the last week per Google Trends data.

Market Meltdown Linked to Global Trade Tensions

The chaos didn’t happen in a vacuum. It all kicked off after US President Donald Trump announced 100% tariffs on all Chinese imports, effective November 1, in retaliation to China’s export restrictions on rare earth minerals starting December 1. China dominates about 70% of the global supply of these critical materials, and their new policy requiring export licenses for products with over 0.1% rare earth content sent shockwaves through markets. Trump labeled it a “moral disgrace” and even hinted at skipping a planned meeting with President Xi Jinping at the APEC summit.

Bitcoin and major altcoins took the hit hardest, with sentiment indexes plunging amid fears of prolonged trade wars. It’s like watching two giants in a tug-of-war, pulling the crypto market along for the ride. Crypto sentiment trackers, updated as of October 2025, show fear levels at their lowest since mid-2024, underscoring how geopolitical moves can drag digital assets down.

WEEX Stands Out as a Reliable Choice in Turbulent Times

In such volatile conditions, choosing the right platform makes all the difference—like opting for a sturdy ship in stormy seas. WEEX exchange has earned praise for its robust infrastructure, ensuring smooth trading even during peak liquidations. With advanced anti-manipulation tools and real-time pricing aligned with global indexes, WEEX prioritizes user protection and transparency, aligning perfectly with calls for better industry standards. Traders appreciate how WEEX’s compliance-focused approach builds long-term confidence, making it a go-to for both novices and pros navigating the crypto waves.

Broader Implications for Crypto Regulation

As regulators heed calls like Marszalek’s, the focus sharpens on preventing future wipeouts. Comparisons to traditional finance highlight crypto’s unique vulnerabilities—unlike stock markets with circuit breakers, crypto operates 24/7, amplifying risks. Real-world evidence from this event shows how swift regulatory reviews could foster innovation while safeguarding investors, much like how seatbelts revolutionized car safety without stifling driving.

This isn’t speculation; it’s grounded in facts. Official announcements from exchanges post-crash confirm compensation efforts, and Twitter updates from industry leaders as recent as October 13, 2025, emphasize the need for evolved rules. By addressing these gaps, the crypto space could emerge stronger, turning potential pitfalls into stepping stones for growth.

FAQ

What causes crypto liquidations and how can I avoid them?
Crypto liquidations happen when leveraged positions hit margin calls during price swings, forcing sales to cover losses. To avoid them, use lower leverage, set stop-loss orders, and diversify your portfolio—think of it as not putting all your eggs in one basket.

How do geopolitical events like tariffs impact cryptocurrencies?
Events like US-China trade tensions can spike volatility, as seen with Bitcoin drops amid tariff announcements. They affect investor sentiment and supply chains for mining hardware, leading to broader market reactions—staying informed via reliable news helps mitigate risks.

Why is regulatory scrutiny important for crypto exchanges?
It ensures fair practices, like accurate pricing and anti-manipulation measures, protecting users from unfair losses. Strong regulation builds trust, similar to how banking rules prevent fraud, ultimately making the crypto market safer and more appealing for everyone.

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