{"id":13201,"date":"2025-10-13T07:42:13","date_gmt":"2025-10-13T07:42:13","guid":{"rendered":"https:\/\/bitunikey.com\/news\/hyperliquid-ceo-questions-binances-liquidation-transparency\/"},"modified":"2025-10-13T07:42:18","modified_gmt":"2025-10-13T07:42:18","slug":"hyperliquid-ceo-questions-binances-liquidation-transparency","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/hyperliquid-ceo-questions-binances-liquidation-transparency\/","title":{"rendered":"Hyperliquid CEO questions Binance\u2019s liquidation transparency"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p>Hyperliquid\u2019s founder has reignited the debate over exchange transparency, questioning Binance\u2019s liquidation reporting practices.<\/p>\n<div id=\"cn-block-summary-block_0a60c7614054b253dee038ef77663115\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Hyperliquid founder criticizes Binance for underreporting liquidation events, showing only one per second during volatile periods.<\/li>\n<li>The criticism comes after a $19 billion wipeout led to the depeg of the exchange\u2019s USDe, wBETH, and BnSOL.<\/li>\n<li>Binance recently pledged up to $283 million in compensation for affected users.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Jeff Yan, the CEO and founder of Hyperliquid, has taken aim at Binance\u2019s liquidation reporting practices, raising concerns about a lack of transparency in how centralized exchanges disclose critical trading data. <\/p>\n<p>In a <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/chameleon_jeff\/status\/1977578610329534958?s=46\">tweet<\/a> on Oct. 13, Yan mentioned how Binance\u2019s liquidation streams underreport actual events, particularly during periods of high volatility.<\/p>\n<p>The critique stems from the exchange\u2019s own documentation, which reveals that liquidation order streams only push the most recent liquidation order within a 1000-millisecond window. If no liquidation happens in that interval, no data is sent. <\/p>\n<p>The Hyperliquid co-founder warned that this could result in severe underreporting, potentially by a factor of 100 when multiple liquidations occur simultaneously.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Hyperliquid\u2019s fully onchain liquidations cannot be compared with underreported CEX liquidations<\/p>\n<p>Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain\u2019s execution, including all liquidations and their\u2026 <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/K5sv74LJgO\">pic.twitter.com\/K5sv74LJgO<\/a><\/p>\n<p>\u2014 jeff.hl (@chameleon_jeff) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/chameleon_jeff\/status\/1977578610329534958?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">October 13, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Yan emphasized that such practices contrast sharply with Hyperliquid\u2019s model. Built as a fully on-chain decentralized exchange (DEX), Hyperliquid logs every trade, order, and liquidation on-chain in real-time. This setup, he argues, ensures transparency, neutrality, and user trust. <\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>\u201cAnyone can permissionlessly verify the chain\u2019s execution,\u201d he said, suggesting this is the ideal framework for a global financial infrastructure.<\/p>\n<h2 class=\"wp-block-heading\">Binance, Hyperliquid hit as volatile weekend causes huge crypto liquidation<\/h2>\n<p>The timing of Yan\u2019s statement comes after the crypto market experienced a huge liquidation over the weekend. On Oct. 10-11, a sharp sell-off triggered by renewed U.S.-China trade tensions sent Bitcoin plummeting below $110,000. Over $19 billion in long and short positions were liquidated, with Hyperliquid alone seeing over $1.23 billion wiped out.<\/p>\n<p>The downturn exposed vulnerabilities across exchanges, especially CEXs. Binance, already under pressure, faced additional criticism over a depeg event that sent assets like USDe, wBETH, and BnSOL dropping to $0.65, $0.20, $0.13, respectively. <\/p>\n<p>Many users including market makers and arbitrageurs reported substantial losses as the exchange\u2019s system degradation stopped them from accessing primary markets and executing hedges.<\/p>\n<p>Amid the reports that Binance\u2019s limited reporting masked the true scale of the liquidation cascade, other industry findings allege that the crash may have been an orchestrated exploit. <\/p>\n<p>Meanwhile, the exchange has since <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/Abrlien\/status\/1977457581963563024?t=MW2RCcLGBcGClHiJYWvuNQ&amp;s=19\">announced<\/a> a $283 million compensation plan for verified users and acknowledged the reporting flaws, promising future risk-management recalibrations.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hyperliquid\u2019s founder has reignited the debate over exchange transparency, questioning Binance\u2019s liquidation reporting practices. Summary Hyperliquid founder criticizes Binance for underreporting liquidation events, showing only one per second during volatile&hellip;<\/p>\n","protected":false},"author":1,"featured_media":11733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=13201"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13201\/revisions"}],"predecessor-version":[{"id":13202,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/13201\/revisions\/13202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/11733"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=13201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=13201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=13201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}