Today in crypto, following a massive crypto crash over the weekend, Hyperliquid CEO Jeff Yan and data platform CoinGlass warned that the liquidation reporting method used by centralized exchanges, such as Binance, may undercount actual liquidations, the US government entered its third week of shutdown, with the decision of 16 crypto ETFs hanging in the balance, and US and China representatives signal easing trade tensions.
Centralized exchanges face claims of massive liquidation undercounts
Hyperliquid co-founder and CEO Jeff Yan claimed that the way centralized crypto exchanges, and Binance specifically, report data is likely to underrepresent liquidations.
Bitcoin (BTC) fell to $102,000 on Friday after US President Donald Trump announced sweeping tariffs on China. Similarly, Ether (ETH) fell to $3,500, and Solana (SOL) dropped below $140 in a marketwide sell-off.
CoinGlass data indicated that on Friday, $16.7 billion of long liquidations and $2.456 billion of short liquidations occurred, making it the biggest liquidation event in crypto history.
In a Monday X post, Yan pointed to a documentation page on the world’s top crypto exchange, Binance, explaining that the platform will only include the latest liquidation happening in each second interval in the order snapshot stream.
This stream pushes real-time updates about force-liquidated positions. Batching outputs this way allows for higher performance, but Yan explained that only reporting the last liquidation may lead to underreporting of mass liquidation events, as they process more than 100 liquidations per pair per second.
“Because liquidations happen in bursts, this could easily be 100x under-reporting under some conditions,“ Yan wrote.
Yan’s statement echoed a Saturday X post from crypto data platform CoinGlass. The platform said that “the actual [liquidated] amount was likely much higher” since “Binance only reports one liquidation order per second.”
US gov shutdown enters third week with ETF “floodgates” ready to burst
America’s federal government has entered its third week of shutdown, leaving as many as 16 exchange-traded funds (ETF) awaiting approval should the shutdown continue into November.
Most of the US government came to a standstill on Oct. 1 when the Republicans and Democrats failed to reach a funding agreement. This has caused agencies, including the US Securities and Exchange Commission, which approves ETF applications, to run with only essential staff.
The crypto industry was set for a flood of ETFs in October, with the SEC set to make their final decisions on at least 16 crypto ETFs, and another 21 applications filed in the first eight days of October, but the shutdown has left everything in limbo, with deadlines passing and no action taken.
For it to end, Congress, both the House of Representatives and the Senate, must pass legislation to fund the government. Once the bills pass, President Donald Trump can sign them into law, and the shutdown will end.
US and China representatives signal easing trade tensions
Representatives from the United States and China eased the heated rhetoric around trade policies after tensions between the two countries flared up this week due to China’s export controls on rare earth minerals and US President Donald Trump’s announcement of an additional 100% tariff on China.
China’s Ministry of Commerce signaled a willingness to negotiate on the rare earth export control proposal and other trade issues on Sunday, which came alongside a statement from Trump. In a Sunday Truth Social post, Trump wrote:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
Market analysts said that signs of de-escalation from Trump could pump financial markets on Monday, reversing the price decline that impacted crypto markets over the weekend.
