💭 When the market crashed last week and HYPE plunged near $20, Hyperliquid claimed zero bad debt and full on-chain transparency — a flex few CEXs could match.
But founder Jeff Yan went further, calling out centralized exchanges for underreporting liquidations during high-volatility events.
📉 The Liquidation Debate
🧩 Hyperliquid runs fully on-chain — every order, trade, and liquidation is verifiable in real time.
⚠️ Yan alleged that Binance and others report only a fraction of real liquidations — sometimes 1 out of 1,000 — masking the real market stress.
💬 In response, CZ defended Binance, saying ecosystem players like Binance and Venus “took hundreds of millions out of their own pockets to protect users.”
📊 The Bigger Picture
🔻 The clash followed a brutal market wipeout — $19B in leveraged positions were liquidated as BTC fell from $122K to $102K.
💨 Amid chaos, Hyperliquid reportedly handled $50–70B in trading volume without downtime, while Binance briefly faced technical issues.
🤝 Notably, Jeff Yan once joined the Binance Labs Incubation Program back in 2018 — making this confrontation even more symbolic.
💬 Expert Take
🧠 Hyperliquid is positioning itself as the “anti-CEX,” proving that transparency isn’t just a buzzword when every trade lives on-chain. Meanwhile, Binance remains the liquidity king — but at what cost to visibility?
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