Stream Finance suspended deposits and withdrawals on Nov. 3 following a liquidation event that resulted in approximately $93 million in losses on Oct. 11, the platform announced. An external fund manager's position was liquidated during significant market volatility. The incident exposed liquidity risks across multiple DeFi protocols, with Elixir facing $68 million in exposure and Morpho addressing liquidity shortfalls in certain pools, which the protocol's co-founder said were not system vulnerabilities. Yield-bearing stablecoins saw their largest weekly outflow since the Luna collapse, totaling $1 billion, while Ethena Labs' USDe market cap fell below $9 billion, down roughly 45% over the past month.

Yield-bearing stablecoins saw $1 billion in outflows over the past week, the sector's largest weekly redemption since the Terra-Luna collapse in May 2022, Stablewatch data show. Stream Finance's xUSD was liquidated entirely following a $93 million loss in underlying fund assets. Coinshift's csUSDL saw its total value locked drop 95% to $1.92 million, while Elixir's deUSD and sdeUSD both faced liquidity crises.

Ethereum-based lending protocol Compound paused several v3 Comet markets, including USDC, USDS, and USDT markets, following a proposal by DeFi research firm Gauntlet that passed. Withdrawals for USDC and USDS lending markets resumed on Nov. 6, with Compound stating it will gradually restore markets while ensuring system security. The pause responds to a liquidity crisis affecting Elixir's deUSD and sdeUSD tokens, both listed as collateral across the markets, following Stream Finance's Nov. 4 disclosure of a $93 million loss in fund assets, with Elixir bearing $68 million in exposure.

Bitcoin briefly fell below $101,000 and traded at $101,471 on November 7, BlockBeats reports. The total cryptocurrency market capitalization declined 2.5% in 24 hours to $3.462 trillion, while Ethereum held at $3,300, Solana at $154, and BNB at $949. Crypto-related stocks posted sharp losses, with Coinbase down 7.54%, Circle falling 11.52%, and Strategy declining 6.98%. Major altcoins also dropped, including GIGGLE down 22% to $203, MITO falling 27.2% to $0.086, and KITE declining 21% to $0.07.

The Nasdaq Composite extended losses to 2% on November 7, with Nvidia (NVDA.O) declining 3.43%, Jin10 data show. Tesla (TSLA.O) fell 5.78% and Intel (INTC.O) dropped 3.95% during the session.

Address 0x540C withdrew 114.9 million USDT from Aave on November 6, Lookonchain data show. The withdrawal pushed Aave's main market USDT utilization rate to 92.83%, exceeding the protocol's optimal utilization threshold of 92%.

Liquidity pools operated by MEV Capital and Re7 Labs on Lista DAO reached 99% utilization on Nov. 6, triggering mandatory liquidation procedures, Lookonchain data show. Multiple DeFi platforms are currently showing fund utilization rates exceeding 90%, prompting advisories for users to monitor associated risks.

Cryptocurrency markets recorded $50.65 million in liquidations over the past hour, with long positions accounting for $43.09 million and short positions for $7.37 million, Coinglass data show. The liquidation wave primarily affected leveraged long traders across exchanges.