We provide a unified parameter-free explanation of the observed oxygen-isotope effects on the critical temperature, the magnetic-field penetration depth and on the normal-state pseudogap for underdoped cuprate superconductors within the framework of the multi-(bi)polaron theory with strong Coulomb and Fröhlich interactions. We also quantitatively explain the measured critical temperature and the magnitude of the magnetic-field penetration depth. This paper thus represents an important support for the bipolaron theory of high-temperature superconductivity, compatible with many other independent observations. On the long journey towards a microscopic understanding of superconductivity, the observation of an isotope effect on the critical temperature, T c , in 1950 [1,2] provided an important clue to the microscopic mechanism of superconductivity. The presence of an isotope effect thus implies that superconductivity is not of purely electronic origin. In the same year, Fröhlich [3] pointed out that the electron-phonon interaction gave rise to an attractive interaction between electrons, which might be responsible for superconductivity. Fröhlich's theory played a decisive role in establishing the correct mechanism. Finally, in 1957, Bardeen, Cooper and Schrieffer (BCS) [4] developed the BCS theory that was the first successful microscopic theory of superconductivity. The BCS theory implies an isotope-mass dependence of T c , with an isotope-effect exponent α = −d ln T c /d ln M = 1/2, in excellent agreement with the reported isotope exponents in simple metallic superconductors such as Hg, Sn and Pb.The doping-dependent oxygen-isotope effect (OIE) on the critical temperature T c , α O = −d ln T c /d ln M O (where M O is the oxygen-isotope mass) [5] and the substantial OIE on the in-plane supercarrier mass m * * ab , α O m * = dm * * ab /d ln M O [6-11], provide direct evidence for a significant electron-phonon interaction (EPI) also in high-temperature cuprate superconductors. High-resolution angle-resolved photoemission spectroscopy (ARPES) [12] provides further evidence for strong EPI with c-axis-polarized optical phonons [13]. These results, along with optical [14], neutron scattering [15,16] and tunneling data [17][18][19], unambiguously show that lattice vibrations play a significant but unconventional role in high-temperature superconductivity. The interpretation of the optical spectra of high-T c materials as the polaron absorption [20,21] strengthens the view [22] that the Fröhlich EPI is important in those structures. Operating together with a shorter-range deformation potential and molecular-type (e.g. Jahn-Teller [23]) EPIs, the Fröhlich EPI can readily overcome the Coulomb repulsion at a short distance of about the lattice constant for electrons to form real-space inter-site bipolarons [24].Despite all these remarkable and well-performed experiments that lead to the consistent conclusion about the important role of EPI in high-temperature superconductors, there is no consensus on the microscopic origin of ...