- The CEO of Hyperliquid, Jeff Yan, thinks some CEXs have underreported the liquidations on their platforms during the recent crypto market crash.
- Citing Binance as an example, he claimed the $19.2 billion in liquidations during that time may be worse than they appear.
- He suggested there may be over a hundred underreported orders in Binance alone every 1,000 ms.
Hyperliquid (HYPE) CEO Jeff Yan recently dropped a bombshell, claiming that last weekend’s crypto liquidations were underreported. He believes the $19.2 billion in liquidations during the market turmoil could be 100x worse.
Hyperliquid CEO Emphasizes Importance of DeFi
Yan’s post on X this Monday explained that decentralized exchanges (DEXs) like Hyperliquid process every order, trade, and liquidation on-chain. This opens Hyperliquid’s data to the public, so anyone can permissionlessly verify the chain’s execution, including every liquidation and fair execution for all users.
Additionally, the platform’s utmost transparency lets the public view the entire system’s solvency in real time. Hyperliquid’s CEO highlighted that these factors make fully on-chain decentralized finance (DeFi) an ideal infrastructure for global finance.
Criticism of Underreported CEX Liquidations
In comparison, Yan reminded the crypto community of the tendency of centralized exchanges (CEXs) to underreport their users’ liquidations to the public. He cited Binance’s practices as an example.
According to the Hyperliquid exec, Binance’s Liquidation Order Snapshot Streams only reflects one liquidation order every 1,000 milliseconds (ms), even if there were a thousand liquidations across the timeframe. It skips the process if no transactions took place within the period.
Given those facts, Binance could easily underreport transactions. Yan estimates the platform likely skips around a hundred orders within that span. Hence, he called for more transparency and neutrality on the matter.
Applying those underreported figures to last weekend’s crypto market mayhem could amplify our initially reported near $20 billion liquidations, and that’s just Binance in the picture. Putting other CEXs in the equation with similar methods could exponentially increase the numbers.
Hyperliquid Whale Exposed
In relation to the latest crypto panic, the Coin Bureau just exposed the identity of one of the Hyperliquid whales who has bet successfully against the market. Citing former Binance CEO Changpeng “CZ” Zhao as a source, the platform tied a substantial chunk of the shorts to former Bitforex CEO Garret Jin.
The crypto community believes the former head honcho of the fraud-riddled exchange that ghosted its users in 2024 made over $150 from his carefully-timed short positions before US President Donald Trump’s market-shaking announcement on Friday. However, the Coin Bureau said Jin denied having access to insider information and pointed out that the funds he had invested before the crash were from his clients.
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