XRP collateral under pressure beside a USDC liquidation mechanism

XRP-Backed Loans Trigger 883 Morpho Liquidations as $53.5 Million Remains Exposed

By Isaac • November 13, 2026 7:37 pm • Comments

A sharp drop in XRP put a concentrated pocket of decentralized-finance borrowing under real pressure this week.

Researchers counted 883 liquidation events in the cbXRP/USDC market on Morpho’s Base deployment between November 7 and early November 13. Liquidators repaid more than 4 million USDC and took more than 4.18 million cbXRP as collateral.

The unwind was significant, but the most important number may be what remains: roughly $53.5 million in USDC debt was still outstanding in the market.

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CryptoSlate analyzed Morpho’s indexed liquidation records and found that the selected events repaid 4,016,076 USDC while seizing 4,181,584 cbXRP. The records reported zero bad debt, meaning the liquidated collateral covered the debt in those events.

The review covered liquidation logs from November 7 through before 13:00 UTC on November 13. It counted events rather than unique borrowers, so repeat appearances by one borrower are possible.

The analysis also kept wrapped cbXRP transfers separate from native XRP selling. That distinction prevents the liquidation total from being presented as proof of an equal amount of XRP sold on the open market.

The largest daily repayment total was about 1.58 million USDC on November 8, followed by roughly 1.06 million on November 10. One decoded November 10 event alone repaid about 202,394 USDC and seized about 218,175 cbXRP, illustrating how collateral changed hands without establishing a native-XRP sale.

What happened in the liquidations.

cbXRP is a wrapped token issued on Base and backed by native XRP held by Coinbase. Borrowers deposit cbXRP as collateral and borrow USDC against it.

When collateral value falls far enough, Morpho allows a liquidator to repay debt and seize collateral.

The largest daily repayment total in the reviewed window was about 1.58 million USDC on November 8. November 10 followed with roughly 1.06 million USDC repaid.

One November 10 transaction shows the mechanics: a liquidator repaid about 202,394 USDC and seized roughly 218,175 cbXRP. The cbXRP then moved to another address while USDC and wrapped Ether moved in the opposite direction.

Seized cbXRP is not proof of native XRP selling.

It is tempting to treat every liquidation as an immediate sale of XRP. The available records do not establish that.

The events occurred on Base and involved cbXRP, not native XRP on the XRP Ledger. Proving that seized collateral became direct selling pressure on native XRP would require tracing redemption, custody movement and subsequent market trades.

The reviewed records stop short of that chain.

The 883 figure is a count of liquidation logs, not necessarily 883 unique borrowers. One borrower can appear more than once, and the data does not prove that every liquidated position belonged to the earlier cohort identified near its threshold.

The remaining debt is the next test.

XRP was not falling in isolation. Bitcoin, Ether and other major assets were also under pressure, with leveraged long positions being forced out across the market.

That broader weakness matters for remaining Morpho borrowers. If XRP falls again, more cbXRP collateral can cross liquidation thresholds.

If the market stabilizes, borrowers may have time to add collateral or repay debt.

So far, zero bad debt suggests the liquidation system worked as designed in the reviewed events. That is good news for lenders.

It is less comforting for borrowers who lost collateral, and it does not remove the risk around the $53.5 million still outstanding.

The first wave happened. The next question is whether XRP can stabilize before the remaining leveraged positions are tested again.

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