{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,17]],"date-time":"2026-04-17T04:42:05Z","timestamp":1776400925013,"version":"3.51.2"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":21,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>On October 10, 2025, a geopolitical shock triggered the largest forced deleveraging in cryptocurrency history. Over $19 billion in leveraged positions were liquidated within 24 hours across centralized (CeFi) and decentralized (DeFi) venues. This paper exploits the event as a natural experiment: identical assets (BTC, ETH) experienced the same exogenous shock simultaneously across architecturally distinct trading venues. We identify five architectural design axes along which venue outcomes diverged: (1) oracle design, (2) liquidation engine transparency, (3) order book vs. AMM liquidity provision, (4) auto-deleveraging mechanics, and (5) system availability under stress. We document that DeFi lending protocols (Aave) processed $250M+ in liquidations and remained continuously operational with only modest reserve deficits, while the largest CeFi exchange (Binance) experienced transfer-subsystem degradation, venue-specific stablecoin depegs, and used a liquidation reporting architecture that external analysts argued understates true liquidation volumes by up to 100x during bursty conditions. Using sub-second L2 order book data from Hyperliquid\u2019s public archive merged with Binance tick-level trade data (11.4 million trades), we find that at 21:24:09 UTC, BTC prices diverged by 7.24% ($7,387) between venues in a single second\u2014with 26,558 Binance trades executing at that moment. The direction of divergence reversed completely within seven minutes as venue-specific liquidation dynamics dominated fundamental price discovery. ETH diverged by 5.32% ($185), with bid-ask spreads widening 602x and bid depth collapsing 99.8% to under $9,000. A Hasbrouck (1995) information share analysis reveals that Binance led price discovery with an 82.5% share throughout the cascade\u2014Hyperliquid\u2019s price divergence reflected lagged adjustment, not independent discovery. We argue that market microstructure observability is an architectural property, not a data collection problem, and propose a framework for evaluating venue resilience under tail risk.<\/jats:p>","DOI":"10.2139\/ssrn.6592831","type":"posted-content","created":{"date-parts":[[2026,4,17]],"date-time":"2026-04-17T03:44:56Z","timestamp":1776397496000},"source":"Crossref","is-referenced-by-count":0,"title":["Same Shock, Same Assets, Different Microstructure:,A Comparative Analysis of CeFi and DeFi Venue Performance,During the October 10, 2025 Cryptocurrency Cascade"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"78","reference":[{"key":"ref1","article-title":"How Aave liquidations perform under volatile conditions","author":"Aave","year":"2026","journal-title":"Aave Blog"},{"key":"ref2","author":"H Adams","year":"2025","journal-title":"Post on X (@haabordeaux), October 11. 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