Hyperliquid Founder Slams Binance, CEXs Blaming Then of 100x Underreporting

Hyperliquid founder Jeff Yan has come forward to defend his decentralized exchange (DEX), following accusations of liquidations following last Friday’s crypto market crash. He said that the DEX’s fully on-chain liquidations cannot be compared with Binance and other CEXs, which have been underreporting by nearly 100x.

Last week, top crypto exchanges like Binance, Coinbase, Kraken faced congestion, leading to massive liquidations. On the other hand, Hyperliquid reported zero downtime while handling all trades very swiftly.

Hyperliquid Advocates for Full On-Chain Transparency

Jeff Yen emphasized that Hyperliquid’s fully on-chain liquidation model offers transparency unmatched by centralized exchanges (CEXs). He added that top exchanges like Binance, Coinbase and others have been underreporting their liquidation numbers by a factor of nearly 100x.

Yen noted that the Hyperliquid DEX reports every order, trade, and liquidation, recorded directly on-chain. This allows anyone to independently verify all transactions and assess the platform’s solvency in real time. “Transparency and neutrality are key reasons that fully on-chain DeFi is the ideal infrastructure for global finance,” stated Yen.

In contrast, leading CEXs like Binance, where liquidation data is often significantly underreport. “Even if there are thousands of liquidation orders in the same second, only one is reported,” Yen explained. Thus, he believes that such practices could result in up to 100x underreporting during volatile conditions.

Crypto.com CEO Calls for Regulatory Investigation After $20B

Last Friday’s crypto market crash triggered nearly $20 billion in liquidations, the largest in crypto history. The numbers escalated this high due to autoliquidations triggered on several centralized exchanges like Binance, Coinbase, etc.

Crypto.com CEO has urged global regulators to investigate centralized and decentralized exchanges following the historic wipeout.

According to market data, Hyperliquid recorded the largest volume of liquidations, totaling $10.31 billion, followed by Bybit with $4.65 billion and Binance with $2.41 billion. The unprecedented event has raised questions about risk management, transparency, and systemic stability. Responding to the latest accusations, Yen said:

“It’s sad to see some people attack Hyperliquid to deflect from their own platforms’ issues. Solvency and uptime are the two most important properties of a financial system. These are table stakes for any trading system, and gaslighting to convince users otherwise is unethical and irresponsible”.

With the start of the news week, the crypto market has staged a strong recovery as U.S. President Donald Trump softens stand on China tariffs.

Bitcoin has gained back the $115,000 support levels while altcoins led by Ethereum (ETH) have seen an even stronger rebound. On the other hand, crypto exchange Binance has agreed a $283 million in compensation for the underperformance last Friday.