Hyperliquid CEO Accuses CEXs of Underreporting Liquidations

Hyperliquid founder Jeff Yan accuses centralized exchanges, including Binance, of underreporting crypto liquidations by up to 100x during recent market turbulence, affecting major cryptocurrencies like BTC, ETH, and SOL.

The accusation highlights transparency issues in centralized exchanges, impacting investor confidence and potentially leading to increased scrutiny from regulators and the crypto community.

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Hyperliquid CEO Jeff Yan has accused major centralized exchanges of significantly underreporting cryptocurrency liquidations. Yan claims that during market volatility, liquidation reports can be suppressed by up to 100x. Yan added, “Because liquidations happen in bursts, this could easily be 100x under-reporting under some conditions.”

This statement comes after a severe market drawdown affecting Bitcoin, Ethereum, and Solana. Yan specifically pointed out Binance, referencing their documentation on liquidation reporting discrepancies.

The impact of alleged underreporting is seen as major market disruptions during sell-offs. The latest incident involved substantial losses in digital currencies, compounding as one of the largest liquidation events on record.

The financial implications are critical, with CoinGlass data indicating $16.7 billion in liquidations for long positions. Industry concern over data transparency is mounting.

Debate over transparency is growing among traders and developers frustrated by opaque reporting. The event underscores calls for on-chain-verified data to ensure accurate market insights.

Historically, market crashes have highlighted such discrepancies, but Yan’s direct allegations bring new scrutiny. Analysts anticipate this could prompt regulatory reviews, potentially driving a push for standardized reporting methods across exchanges.