James Wynn Backs Kris’ Call for Probe Into Exchange Liquidations

James Wynn, a well-known crypto trader, has voiced his support for Crypto.com CEO Kris Marszalek’s call to investigate recent large-scale liquidations across major exchanges. The move follows a dramatic $20 billion liquidation wave that shook the market within just 24 hours.

Kris Sparks Regulatory Debate

Kris Marszalek’s post called for regulators to step in after the surge in exchange liquidation. He questioned whether trading conditions were fair and transparent. He urged authorities to examine whether exchanges slowed down or halted trading during the crash. Also, if all trades were priced correctly. He also raised deeper questions about internal compliance, including the separation between trading teams and overall risk management. 

“$20B in liquidations, a lot of users got hurt. The job of regulatory bodies is to protect the consumers and assure market integrity,” Kris wrote. The data shared by Kris revealed that Hyperliquid accounted for the majority of losses. With over $10 billion in long positions wiped out. Other exchanges like Bybit, Binance and OKX followed. Each recording billions in forced liquidations.

Wynn Agrees, But Adds Perspective

James Wynn responded to Kris’ post, admitting he hadn’t seen the liquidation data before but found it striking. While he acknowledged that Hyperliquid dominance in perpetual trading naturally makes it more prone to higher liquidation numbers. He said the trend still raises questions. “Not necessarily HL’s fault as it does have one of the biggest market shares when it comes to perp trading,” James Wynn said. 

He humorously added that Hyperliquid “attracts more of the degenerate type,” referencing the platform’s popularity among high leverage traders. His take balanced Kris’ concerns with a practical reminder. Those exchanges with the most volume are bound to see more dramatic numbers during volatile moves. Still, James Wynn backing adds weight to Kris’ call for closer oversight and transparency in the crypto trading ecosystem.

Traders Weigh In

Crypto traders quickly joined the discussion, offering their takes on what caused the wipeout and what it means for the market. Many pointed out that the majority of liquidations were long positions. This means bullish traders were overexposed when prices dropped. One user wrote, “$10B+ in longs wiped shows the degen playground shaking out weak hands.” Others noted that Hyperliquid’s high activity simply made it more visible in the data. Some even dismissed the need for heavy regulation. They suggest that such shakeouts are part of the natural crypto cycle. A few traders argued that temporary slowdowns on exchanges may have helped prevent further panic selling.

Calls for Fairer Practices

While opinions vary, the liquidation event reignited the conversation around exchange practices and trader protection. Many users echoed Kris’ concern that exchange mechanics during volatile periods remain opaque. With limited public insight into internal systems. As the market stabilizes, eyes are now on regulators and exchange operators to ensure fairness and transparency. James Wynn endorsement of Kris’ call shows how even industry insiders believe oversight could strengthen trust in crypto markets, not weaken it. Currently, the debate continues as traders recover from one of the most volatile liquidation days of the year.