XRP loans trigger 883 liquidations, and $53M remains at risk

XRP-backed borrowers surrendered about 4.18 million cbXRP in 883 liquidation events on Morpho, as liquidators repaid just over 4 million USDC of debt.

The activity took place in a lending market on Base where borrowers pledge cbXRP to borrow USDC.

CryptoSlate's analysis of Morpho's indexed transaction records covers Nov. 7 at 10:30:51 UTC through Nov. 13 before 13:00 UTC. The 883 events count individual liquidation logs, so one person can be represented more than once.

A later snapshot on Nov. 13 still showed 53.53 million USDC outstanding.

An earlier loan-stress coverage used Nov. 6 positions to estimate that a further 10% oracle-price decline could bring 8.84 million USDC of debt across 1,070 positions to liquidation eligibility, assuming balances stayed unchanged.

What XRP borrowers gave up

The market's liquidation threshold is 62.5% loan-to-value, which compares the debt with the collateral's value: falling collateral prices can push the same loan above the permitted ratio.

Under Morpho's liquidation mechanism, an outside liquidator can repay some or all of an eligible position's debt and receive collateral plus an incentive. Here, that means paying USDC and taking cbXRP.

Collateral leaves the position while the debt obligation shrinks, and the records alone do not fully capture each borrower's economic outcome.

The largest daily repayment total in the selected window was about 1.58 million USDC on Nov. 8, followed by about 1.06 million on Nov. 10. All 883 selected liquidation records reported zero bad debt, the debt left uncovered by collateral.

The decoded liquidation log for a Nov. 10 transaction shows about 202,394 USDC repaid, and 218,175 cbXRP seized in the same market.

The liquidator then sent that cbXRP amount to another address and received USDC and wrapped ETH from that address in the same transaction. A separate Nov. 7 log records about 1,050 USDC repaid against 1,029 cbXRP seized.

Establishing native XRP selling would require evidence linking the seized collateral to subsequent XRP trading, including any redemption or custody movement along the way.

One November 10 transaction: follow the tokens

At 15:35:42 UTC, one liquidation repaid 202,394.36 USDC and seized 218,174.72 cbXRP. Both amounts belong to this one event.

Liquidation reduces USDC debt and transfers cbXRP. The path to native XRP trading remains untraced.

Counts refer to liquidation logs; borrowers can recur and the earlier at-risk cohort was not matched. Debt repaid is distinct from borrower economic loss. The selected Base transfers do not trace a native XRP redemption or sale, or explain XRP's broader price movement.

Sources and evidence

Sources

1. Morpho original POST liquidation analysis
2. November 7 conditional stress article
3. Morpho liquidation mechanism
4. Coinbase cbXRP backing
5. November 10 decoded liquidation and transfers
6. November 7 decoded liquidation

Supporting facts

• CryptoSlate's analysis of Morpho's indexed API records found 883 liquidation events in the Base cbXRP/USDC market from November 7, 2026 at 10:30:51 UTC to November 13 before 13:00 UTC, repaying 4,016,076.342260 USDC and seizing 4,181,584.301387 cbXRP. [1]
• The 883 events are liquidation logs, not a count of unique people or proof that the same positions in the earlier risk snapshot were liquidated. [1] [2]
• Debt repaid during liquidation is not an estimate of the borrower's cash loss, and seized collateral is not a measure of native XRP sold. [1] [3] [4]
• A November 10 transaction at 15:35:42 UTC contains a decoded liquidation of 202,394.361513 USDC against 218,174.720605 cbXRP in this market; its transfers then send the same cbXRP amount from the liquidator to another address while USDC and wrapped ETH move in the opposite direction. [5] [1]
• Coinbase describes cbXRP as a wrapped token backed 1:1 by native XRP held by Coinbase. [4]
• Establishing native XRP selling would require linked redemption, custody or trading evidence beyond a Base cbXRP collateral transfer; the reviewed records do not establish that chain or show that these liquidations caused XRP's broader price movement. [4] [6] [5] [3]

Method

Window: November 7, 2026 10:30:51 UTC to November 13 before 13:00 UTC. Original Morpho POST analysis, UTC-day partitions, log deduplication and six-decimal scaling. Totals rounded to three decimals in millions; November 10 example rounded to two token decimals. Arrows show direction, without a quantity scale.

Scope

Counts refer to liquidation logs; borrowers can recur and the earlier at-risk cohort was not matched. Debt repaid is distinct from borrower economic loss. The selected Base transfers do not trace a native XRP redemption or sale, or explain XRP's broader price movement.

Infographic by CryptoSlate

Substantial borrowing remains

At the API's 16:28:22 UTC state timestamp on Nov. 13, the Base market still carried approximately 53.5 million USDC of debt against 121.7 million cbXRP of collateral.

Coinbase's loan-health guidance says repaying debt or adding collateral can improve a position's health. Optional automatic collateral protection depends on available assets and can fail during volatility or technical problems.

The next consequences for remaining borrowers depend on their own collateral buffers, repayments, and top-ups. The next evidence for XRP holders assessing selling pressure is the destination and use of seized cbXRP, followed by any traceable redemption or native XRP trade.