Exchange-Specific Anomalies in Crypto Price Reporting: How Liquidity Fragmentation and Technical Glitches Distort Asset Valuations

The cryptocurrency market's decentralized nature, while a cornerstone of its innovation, has also created a fragile ecosystem prone to exchange-specific anomalies. These anomalies-ranging from technical glitches to liquidity fragmentation-can distort asset valuations, generate false signals for traders, and expose systemic risks in a market still grappling with infrastructure immaturity. A case in point is the XRP $100 candle anomaly on Upbit in December 2025, which highlights how localized pricing distortions can ripple into broader market instability.

The XRP $100 Candle: A Confluence of Glitches and Liquidity Gaps

The XRP $100 candle on Upbit emerged amid a backdrop of heightened on-chain activity and technical irregularities. According to a report by , XRP experienced a rare $716 million on-chain whale anomaly in December 2025, marked by 716 large transactions exceeding $1 million each. While this activity suggested potential liquidity buildup or market manipulation, the XRP price remained stagnant between $2.20 and $2.30 on major exchanges. This disconnect hinted at a disconnect between on-chain movements and real-time trading dynamics.

Simultaneously, technical glitches on other exchanges exacerbated the anomaly. On Kraken, for instance, XRP briefly spiked to $91.6 due to a trading error at 04:15 UTC, reverting to $2.18 shortly thereafter. This glitch, attributed to irregular order activity or thin liquidity, underscored how isolated exchange errors can create misleading price signals. The anomaly was not unique to Kraken; similar incidents occurred on Gemini in 2023 and GateHub in July 2025, illustrating a recurring vulnerability in crypto's fragmented infrastructure.

Liquidity Fragmentation: A Systemic Threat

The XRP anomaly on Upbit cannot be fully understood without examining broader liquidity fragmentation across crypto exchanges. In October 2025, a $19 billion liquidation cascade exposed the fragility of liquidity structures. During the flash crash, Bitcoin's price diverged by up to 10% across exchanges, while stablecoins like USDe depegged to as low as $0.65 on Binance due to exchange-specific oracle systems. These discrepancies were not reflective of intrinsic asset value but rather the result of localized microstructure issues, such as deterministic liquidation protocols and cross-margining systems.

For XRP, liquidity fragmentation was amplified by macroeconomic factors. noted that XRP's trading activity on Upbit surged to $1.55 billion in 7-day volume, driven by panic buying and technical indicators of a potential price floor. However, bearish on-chain metrics-such as a descending triangle pattern and a bearish EMA crossover-suggested further downside risk. This duality-high trading volume amid weak fundamentals-exemplifies how liquidity fragmentation can create false signals, misleading traders into overestimating demand or undervaluing risk.

The October 2025 flash crash revealed critical flaws in exchange infrastructure, particularly in how pricing, collateral management, and liquidation protocols function under stress. During the crisis, deterministic liquidation systems treated localized price gaps as universal truths, triggering cascading forced sales. For example, Binance's internal oracle systems marked down USDe during the crash, initiating deleveraging mechanisms that disproportionately impacted profitable positions. Such automation, while efficient in stable markets, becomes a liability during volatility, compounding losses and eroding trust.

The XRP $100 candle on Upbit may have been influenced by similar dynamics. If the candle reflected a surge in buy orders on Upbit, it could have triggered algorithmic responses on other exchanges, distorting price discovery. This scenario aligns with Solidus Labs' analysis of the 2025 liquidity crisis, which emphasized how fragmented liquidity pools and thin order books exacerbate volatility.

Implications for Traders and Market Infrastructure

The XRP anomaly and October 2025 crash underscore the need for multi-exchange price verification in trading strategies. Traders relying on single-exchange data risk acting on distorted signals, as seen in the Kraken glitch and USDe depegging. Institutional participants, meanwhile, must advocate for improved infrastructure, including cross-venue surveillance and circuit breakers, to mitigate systemic risks.

For XRP, the path forward hinges on resolving liquidity fragmentation and technical vulnerabilities. While some analysts remain cautiously optimistic about end-of-year trends and ETF inflows, the asset's bearish fundamentals-trading near $1.88 with a 50% drawdown from its peak-suggest that a $100 price target is unrealistic without a $6 trillion market cap.

Conclusion

The XRP $100 candle anomaly on Upbit is a microcosm of crypto's broader challenges. Technical glitches, liquidity fragmentation, and flawed exchange infrastructure create an environment where price signals are unreliable, and systemic risks loom large. As the market matures, stakeholders must prioritize transparency, robust liquidity mechanisms, and cross-exchange coordination to prevent future crises. For traders, the lesson is clear: diversify data sources, verify price signals across exchanges, and remain vigilant in a market where anomalies are not just possible but inevitable.