Hyperliquid Founder Claps Back at CZ’s ’Dark Pools’ Idea—Here’s Why It Matters

When Binance’s CZ floated the concept of ’dark pools’ for crypto trading, Hyperliquid’s founder didn’t just disagree—they threw gasoline on the debate. Here’s the fiery response shaking up DeFi circles.

No vague corporate speak—just a straight shot across the bow of traditional exchange models. Because nothing says ’disruption’ like publicly calling out the biggest name in crypto.

Bonus cynicism: Because what crypto really needs is more Wall Street-style opacity—said no decentralized purist ever.

Hyperliquid better for whales?

However, Yan noted that CEXes have insider trading and operators with access to the margin data of the touted ‘private’ pools. As a result, CEX operators can hunt whale positions. 

He said the liquidation hunt could be reduced if the pool (open positions) is public, like Hyperliquid DEX. This way, a whale can trick liquidation hunters to counter-trade with them and get discounted market entries. 

Source: Jeff.HL/X

The debate was sparked after Hyperliquid whale James Wynn’s $100M BTC position was liquidated last week following an aggressive hunt.

In response, CZ criticized Hyperliquid’s public pools, which he claimed allow everyone to see and front-run other whale orders. Besides liquidation hunts, CZ decried high slippage and costs for traders in such platforms.  

As a solution, he proposed private ‘dark pools’ based DEXes, drawing parallels from TradFi, 

“I think now might be a good time for someone to launch a dark pool perp DEX. I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX.”

However, Yan claimed, even dark pools can be gamed by insiders and operators. Interestingly, Wintermute founder Evgeny Gaevoy viewed this crypto Twitter drama as an elaborate promotion for the Hyperliquid. 

“But generally, I think ‘Wynn’ is just a well-executed HL promo campaign, well played.”

Amid the drama, Binance exchange, the U.S. subsidiary, announced it WOULD list Hyperliquid’s HYPE on its spot trading platform. 

“The $HYPE is real. Spot trading for Hyperliquid is coming soon to Binance.US.”

The update sent HYPE soaring over 12% above $35, making the $40 price target within reach.