Hyperliquid CEO Demands Answers: Binance’s Liquidation Practices Under Microscope
Transparency crisis brewing at the world's largest exchange as Hyperliquid's chief executive publicly challenges Binance's liquidation reporting.
The Opaque Engine
Market makers and traders left guessing as liquidation data remains shrouded in mystery—just another day in crypto's wild west where trust is the ultimate currency and transparency remains optional.
When the world's biggest exchange can't provide clear liquidation metrics, it makes you wonder what else is happening behind the curtain. But hey, who needs transparency when you've got trading volume?
Binance, Hyperliquid hit as volatile weekend causes huge crypto liquidation
The timing of Yan’s 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.
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.
Many users including market makers and arbitrageurs reported substantial losses as the exchange’s system degradation stopped them from accessing primary markets and executing hedges.
Amid the reports that Binance’s limited reporting masked the true scale of the liquidation cascade, other industry findings allege that the crash may have been an orchestrated exploit.
Meanwhile, the exchange has since announced a $283 million compensation plan for verified users and acknowledged the reporting flaws, promising future risk-management recalibrations.
