Hyperliquid Co-Founder Criticizes Centralized Exchanges
Jeff, co-founder of Hyperliquid, has criticized some centralized exchanges for underreporting liquidation activity. He highlighted the difference between decentralized and centralized systems on X (formerly Twitter).
Jeff stated, “Hyperliquid’s fully on-chain liquidations cannot be compared with underreported CEX liquidations.” He emphasized that Hyperliquid records every order, trade, and liquidation on the blockchain. This allows anyone to verify all transactions and liquidations without restrictions.
Concerns Over Liquidation Reporting on Binance
Jeff explained that some platforms report only one liquidation per second, despite thousands occurring in that time. “Because liquidations happen in sudden bursts, this could easily lead to 100x under-reporting under some conditions,” he said.
He specifically pointed to Binance, noting its liquidation snapshots show only the most recent order every second. This method leaves many liquidations unreported and reduces transparency.
Jeff called for greater transparency in the crypto industry. He said, “Hopefully the industry will see transparency and neutrality as important features of the new financial system, and others will follow.”
Market Data Highlights Transparency Differences
Recent data from Coinglass shows liquidations across major crypto exchanges totaled about $33.43 million. Long positions made up roughly 52% of this total.
- Binance led with $15.25 million in liquidations.
- Bybit followed with $6.77 million.
- OKX reported $5.12 million.
Most exchanges saw more long liquidations, except OKX and HTX, which had slightly more short liquidations.
Hyperliquid accounted for $922,330 in liquidations, about 2.44% of the market. Of this, $624,070 were long positions and $298,260 were shorts, meaning 67% were longs.
Unlike centralized exchanges, Hyperliquid’s fully on-chain system makes every liquidation visible and verifiable. This supports Jeff’s point about the value of transparent and auditable data in crypto markets.
