We analyzed this claim: is it true that
widening access to cryptocurrency derivatives coincided with a Bitcoin price surge that triggered about $125 million in forced liquidations among traders betting against the market?
Webull and Blockchain.com announced new derivatives offerings on October 20, 2026, while Bitcoin briefly climbed to $83,300, forcing the automated closure of roughly $125 million in short positions; the announcements did not cause the price rise, and the market-wide liquidation tally relies on data that could not be independently verified.
Bitcoin jumps past $83,300 as trading firms widen risky bets
Online brokers Webull and Blockchain.com offer everyday investors complex cryptocurrency contracts while sharp price swings wipe out rival bets.
The story continues
NYSE owner backs crypto perpetuals as 1.55 billion unravels
30 October 2026A major Wall Street operator moves to create regulated non-expiring futures as digital-asset traders suffer heavy forced closures.
In a nutshell
Financial trading apps are opening sophisticated cryptocurrency bets to everyday investors, even as sudden market swings continue to wipe out millions of dollars in leveraged trades. Webull announced plans to roll out indefinite price bets known as perpetual futures to American users in November, while Blockchain.com launched one-week options overseas. Just as the announcements landed, a brief Bitcoin rally to $83,300 wiped out roughly $125 million in trades betting against the currency, demonstrating that making complex financial products easier to buy does not protect traders from rapid losses.
Highlights
- Webull announced plans to offer cryptocurrency perpetual futures to United States customers starting in November 2026.
- Bitcoin briefly touched $83,300 on October 20 before retreating toward $82,000.
- Trading trackers reported approximately $125 million in cryptocurrency short liquidations within a single hour on October 20.
- Total outstanding value in Bitcoin futures reached $53.86 billion, rising roughly 2.1% in 24 hours.
- The Chicago Mercantile Exchange continues to challenge federal approval of perpetual futures in court.
From the Editor’s Diary
Making complex bets easier to place through consumer apps does not make volatile markets any safer. When everyday traders use borrowed money, routine price jumps can erase their investments in minutes.
Who's involved
Webull
An American retail investing app that lets people trade stocks, funds and futures
goal → Attract active individual traders by offering cryptocurrency perpetual futures on a regulated United States exchange
Blockchain.com
A global digital wallet and cryptocurrency trading platform
goal → Grow its retail trading business with simple options while seeking licenses to operate derivatives in the United States
Kalshi and KalshiEX
A federally regulated American exchange operator known for prediction markets
goal → List and settle perpetual contracts nationwide while defending its licenses against rival exchanges
Commodity Futures Trading Commission (CFTC)
The United States federal agency that regulates commodity futures and derivatives markets
goal → Approve innovative financial contracts under federal law while defending its decisions in court
Chicago Mercantile Exchange (CME)
The largest traditional financial futures exchange in the United States
goal → Block perpetual crypto contracts by arguing they violate federal trading rules
Cryptocurrency derivatives traders
Everyday investors and institutions using borrowed money to bet on rising or falling coin prices
goal → Profit from digital coin swings without running out of cash collateral and losing their stakes
In short
Everyday investors are gaining easier access to high-risk cryptocurrency bets just as sudden market swings prove how quickly that money can vanish. The widening access makes it likely that more retail traders will face automated losses during routine market volatility. Whether this trend spreads across the United States remains uncertain, because federal regulators and established financial exchanges are currently fighting in court over whether these contracts are legal.
Webull, a retail stock-trading app, said on October 20 that it will let American users trade perpetual futures starting in November. Perpetual futures are agreements to bet on an asset's price without an expiration date. On the same day, crypto wallet firm Blockchain.com launched short-term options, which let users bet on price targets over a single week.
These new tools arrived as the market delivered a harsh lesson in leverage, which is the practice of trading with borrowed funds. A quick rise in Bitcoin to $83,300 forced traders betting on price drops to close about $125 million in losing positions within one hour. When prices rise, brokers automatically shut down underfunded short bets by purchasing the asset back, which can push prices even higher.
Flagged by: Crypto Barometer · 28 October 2026
How it unfolded
A regulatory application opens the path to American perpetual futures
KalshiEX asked the CFTC on May 28, 2026, for permission to list Bitcoin perpetual contracts as standard futures. These agreements let traders hold price bets open indefinitely without rolling them over. Federal approval opened the door for retail brokers to sell these contracts domestically, though legal challenges soon followed.
A regulated opening becomes a legal confrontation
The CFTC approved Kalshi's contract on May 29, bringing a popular offshore trading format into the regulated American financial system for the first time. Kalshi said its contract traded over $1 billion in its first week, though independent analysts could not verify that figure. Established rival CME sued the regulator on June 18, arguing that perpetual contracts are legally swaps rather than futures and were cleared improperly.
Blockchain.com prepares options while pursuing American licenses
Blockchain.com moved forward with consumer options abroad while seeking United States brokerage and exchange licenses. Options let a buyer pay a set fee upfront to bet on price movements without the threat of a margin call, though buyers cannot exit before the contract ends and risk losing their entire fee. The company launched the tool through an entity in the British Virgin Islands, excluding American and British residents while its domestic applications remain pending.
Two companies announce different routes into derivatives
Webull and Blockchain.com unveiled their products on October 20. Webull said its American users can trade Kalshi-cleared perpetual contracts starting in November, while Blockchain.com opened its short-term options on seven tokens for eligible overseas accounts. Webull relies on an approved United States exchange framework, whereas Blockchain.com sells bilateral contracts offshore. Neither structure shields investors from the basic hazards of leveraged crypto markets.
Bitcoin's rebound squeezes short sellers
Bitcoin climbed to nearly $83,300 on October 20 alongside rising stock prices, triggering automated closures for traders betting against the coin. Market monitors reported about $125 million in short liquidations within a single hour as forced buybacks accelerated the price jump. Total open derivatives bets rose 2.1% to $53.86 billion, showing that heavy speculative exposure remained active even as Bitcoin fell back toward $82,000.
Fresh forced closures, but no verified second major squeeze
Individual traders on both sides of the market continued to face forced closures on October 21 as Bitcoin traded near $83,000. Public trading trackers logged isolated liquidations ranging from $82,300 to $300,000 across morning hours. These isolated losses show regular market turbulence rather than another broad wave of failures, and no new regulatory decisions were issued.
Where things stand
The core announcements of October 20 are verified. Webull plans to offer perpetual futures to American investors in November, while Blockchain.com has opened short-term options for eligible international users. Blockchain.com's separate applications for United States licenses remain under review, and the CME lawsuit contesting federal approval of perpetual futures is still pending before a federal judge.
Market data from October 20 confirmed that rapid price swings continue to wipe out leveraged positions, with roughly $125 million in short contracts closed within an hour. Smaller liquidations followed on October 21, but they do not point to a broader market crisis. Regulated brokers make complex trading easier to reach, but they do not make the underlying bets any less hazardous.