News View Non-AMP

Hyperliquid Founder Calls Out Binance and CEXs for Hiding Liquidation Data Amid Market Crashes

Published by
Nidhi Kolhapur and Zafar Naik

Hyperliquid founder Jeff Yan has recently criticized the lack of transparency around centralized exchange (CEX) liquidation reporting, contrasting it with Hyperliquid’s model.

These remarks come after one of the largest liquidation events in crypto history, which affected over 1.6 million traders. The incident has sparked a broader conversation about fairness and accountability in crypto trading.

The Transparency Gap in Centralized Exchanges

Yan pointed out that the difference between centralized and decentralized systems is significant.

He said some CEXs openly admit to dramatically underreporting user liquidations. He cited Binance’s example saying, even if thousands of liquidation orders occur in the same second, only one might be actually reported. As these liquidations often happen in bursts, he notes that this can lead to underreporting by 100x easily in certain conditions. 

He hopes that the industry sees transparency and neutrality as key parts of the new financial system, and encouraged others to follow Hyperliquid’s lead. 

Hyperliquid’s Transparent Approach

“Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations,” Yan said. 

Hyperliquid is a blockchain where every order, trade and liquidation happens fully onchain. Anyone can verify how the chain executes, confirm every liquidation and even check the solvency of the entire system in real time. 

Yan believes that transparency and neutrality are what make decentralized finance (DeFi) the right foundation for the future of global finance.

Community Calls for Stronger Protections

One trader suggested that exchanges should add a type of false wick liquidation protection to better safeguard users. They praised Hyperliquid’s transparent system but said additional protections are needed to prevent traders from suffering unexpected losses during volatile periods.

Community members also urged users to move away from CEXs and called for more transparency and honesty in financial systems.

Notably, Coinglass also praised Hyperliquid for improving transparency in industry data and expressed hope that other platforms and institutions will follow their example.

CZ Pushes Back

Binance founder Changpeng Zhao (CZ) responded indirectly to Yan’s comments.

“Some people ask why BNB is so strong. While others tried to ignore, hide, shift blame, or attack competitors, the key @BNBChain ecosystem players (Binance, Venus, and more) put hundreds of millions of their own money on the line to protect users,” he said. 

He ended his post by saying “different value systems,” which many saw as a quiet dig at Hyperliquid.

Market Crash Tests Platforms’ Strength

The discussion followed a major market crash that shook the crypto sector. Over 1.6 million traders were liquidated, resulting in a $19B wipeout. During this period, Hyperliquid recorded the highest liquidation volume at $10.31 billion, followed by Bybit and Binance. 

Despite extreme volatility, Hyperliquid maintained 100% uptime and reported zero bad debt, highlighting the strength of its on-chain infrastructure.

Transparency Is Now Essential

This critique highlights how transparency and accountability cannot be optional. 

On DeFi platforms like Hyperliquid, every trade, liquidation, and position is publicly visible on-chain, giving traders a clear, real-time view of the market. Centralized exchanges, however, reportedly keep much of this data hidden, leaving traders in the dark at critical times. 

Experts are now calling for clearer rules and better accountability, urging all exchanges to provide transparent, verifiable data to protect traders.

FAQs

What is the problem with liquidation reporting on centralized exchanges?

Critics allege some major CEXs dramatically underreport liquidations, sometimes by 100x, by counting burst liquidations as a single event, hiding true market risk.

Which exchange had the most liquidations during the recent market crash?

During the major crash, Hyperliquid had the highest liquidation volume at over $10B, but highlighted its 100% uptime and zero bad debt due to its on-chain model.

Nidhi Kolhapur and Zafar Naik

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Recent Posts

China Renaissance Plans $600M Fund to Invest in Binance’s BNB

China Renaissance, a Beijing-based investment bank, is in talks to raise $600 million to create…

October 13, 2025

BNB Price Rockets Past $1,370, Is Another ATH Possible?

Today’s action in BNB price has been nothing short of electrifying. In the last 24…

October 13, 2025

Bittensor TAO Price Teases Weekly Breakout as Grayscale Interest Sparks Recovery

The Bittensor TAO price is trading one of its most critical phases, hinting at a…

October 13, 2025

Sheikh Maktoum Declares Dubai World Leader in Licensed Virtual Assets

Dubai is now the world’s biggest licensed virtual assets (VA) market. On the third anniversary…

October 13, 2025

UAE Recognizes Bitcoin and Crypto as a New Economic Sector

The Prime Minister of the UAE has officially declared Bitcoin and cryptocurrency a “new sector”…

October 13, 2025

5 Best Altcoins to Invest in Before the Next Bull Run

If you’re looking for the best altcoins to invest in before the next bull run…

October 13, 2025