Hyperliquid Vs Binance: Founders Clash Over Liquidation Transparency

During last week’s market downturn that saw HYPE prices plummet towards $20, Hyperliquid reportedly maintained 100% uptime with zero bad debt, as stated by the platform’s founder, Jeff Yan. However, in a post shared on social media site X (formerly Twitter), Yan also raised concerns about certain centralized exchanges (CEXs), suggesting they may have underreported liquidation data during this volatile ￰0￱ Liquidation Debate In his remarks, the platform’s founder highlighted that Hyperliquid operates on a blockchain where every order, trade, and liquidation occurs visibly on-chain, allowing anyone to permissionlessly verify the execution of these ￰1￱ Reading: Bitcoin Weekly Preview: Trump’s Tariff Playbook Is Back — Here’s How To Trade It Yet, Yan identified a troubling trend among some CEXs, which he claims publicly document a drastic underreporting of user ￰2￱ took Binance’s example, noting that even when thousands of liquidation orders occur simultaneously, only one is reported due to limitations in its data ￰3￱ platform’s founder asserted that this can obscure the actual volume of liquidations, particularly during high-volatility events like the recent flash crash, leading to a potential underreporting factor of 100 ￰4￱ response to Yan’s criticism, Binance former CEO and founder Changpeng Zhao (CZ), addressed the issue, stating, Some people ask why is #BNB so strong?

While others tried to ignore, hide, shift blame, or attack competitors, the key @BNBChain ecosystem players (Binance, Venus, and more) took hundreds of millions out of their own pockets to PROTECT ￰5￱ Binance To Hyperliquid This exchange comes on the heels of a major drop on broader crypto prices last Friday, which saw the Bitcoin (BTC) price drop from $122,000 to $102,000 on exchanges like Binance, leading to the liquidation of over $19 billion in leveraged ￰6￱ the chaos, Jeff noted that Hyperliquid reportedly managed a trading volume between $50 and $70 billion without any downtime or ￰7￱ contrast, Binance faced temporary technical issues that left some users unable to close their ￰8￱ Reading: Bitcoin Whale Breaks 13-Year Silence, Moves $33 Million To Exchange Hyperliquid’s founder has a history with Binance, having participated in the Binance Labs Investment Incubation Program in ￰9￱ this period, he, along with co-founder Brian Wong, aimed to develop Deaux, a decentralized prediction market ￰10￱ vision was to create a platform that facilitated collaborative betting within an international liquidity pool using ￰11￱ their time in the Binance Incubation Program, they emphasized the importance of user experience while exploring the benefits of ￰12￱ product sought to mirror the user-friendly interface of centralized exchanges like Binance—offering low fees and real-time feedback—while ensuring security through blockchain smart contracts and incorporating decentralized democratic voting for ￰13￱ the time of writing, HYPE is still recording weekly losses of 14%, with the token trading at around $41.88.

However, it has recovered by over 4% in the last few hours, although all-time high levels are still 28% ￰14￱ image from DALL-E, chart from ￰15￱