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.

Debt repaid. Collateral changed hands.

Window: Nov. 7, 2026 at 10:30:51 UTC to Nov. 13 before 13:00 UTC. Liquidations repaid 4.016m USDC and seized 4.182m cbXRP.
USDC and cbXRP move in opposite directions Morpho market receives 4.016m USDC; Liquidators receives 4.182m cbXRP. Arrows represent asset direction, without a proportional scale. 883 LIQUIDATION LOGSBASE · cbXRP / USDC4.016m USDCdebt repaid into MorphoMorpho marketLiquidators4.182m cbXRPcollateral seized
Asset directions in liquidation Morpho market receives 4.016m USDC; Liquidators receives 4.182m cbXRP. Direction is schematic. 883 LIQUIDATION LOGSMorpho marketLiquidators4.016mUSDCdebt repaid4.182mcbXRPseized

One November 10 transaction: follow the tokens

One November 10 transaction: follow the tokens1 · Collateral seizure2 · Onward exchange
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.
USDC and cbXRP move in opposite directions Morpho market receives 202,394.36 USDC; Liquidator receives 218,174.72 cbXRP. Arrows represent asset direction, without a proportional scale. 10 NOV 2026 · 15:35:42 UTCBASE · cbXRP / USDC202,394.36 USDCdebt repaidMorpho marketLiquidator218,174.72 cbXRPcollateral seized
Asset directions in liquidation Morpho market receives 202,394.36 USDC; Liquidator receives 218,174.72 cbXRP. Direction is schematic. ONE NOVEMBER 10 EVENTMorpho marketLiquidator202,394.36USDCdebt repaid218,174.72cbXRPseized
In the same transaction, the liquidator sent the seized cbXRP onward and received USDC and wrapped ETH. This apparent Base exchange leaves native XRP trading untraced.
USDC and cbXRP move in opposite directions Liquidator receives USDC + wrapped ETH; Counterparty receives 218,174.72 cbXRP. Arrows represent asset direction, without a proportional scale. SAME TRANSACTION · ON BASEBASE · cbXRP / USDCUSDC + wrapped ETHreceived by the liquidatorLiquidatorCounterparty218,174.72 cbXRPsent onward
Asset directions in liquidation Liquidator receives USDC + wrapped ETH; Counterparty receives 218,174.72 cbXRP. Direction is schematic. SAME TRANSACTION · ON BASELiquidatorCounterpartyUSDC +wrapped ETHreceived218,174.72cbXRPsent onward

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.

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