Hyperliquid Founder Accuses Binance of Hiding Liquidation Data
Jeff Yan, founder of the decentralized exchange Hyperliquid, accused Binance and other centralized exchanges (CEXs) of hiding user liquidation data. He said this happened during the market crash on Friday. Yan warned this could mean billions in liquidations were not reported. This keeps market makers and traders unaware of the full impact.
Largest Crypto Liquidation Event May Be Underreported
The crypto market fell sharply on Friday after US President Donald Trump announced a 100% tariff on Chinese goods starting November 1. This caused over $19 billion in liquidations in one day, according to CoinGlass data. Many traders with high leverage lost their positions.
On Monday, Jeff Yan explained a technical issue with Binance’s Liquidation Order Snapshot Stream. The stream reports liquidation events but only updates every 1000 milliseconds (1 second). Yan said this delay can cause underreporting during fast market moves.
Yan stated, “Hyperliquid’s fully on-chain liquidations cannot be compared with underreported CEX liquidations.” He added that on-chain systems allow anyone to verify all liquidations and system solvency in real time. He criticized some CEXs for publicly admitting they underreport liquidations.
Yan also noted that liquidations happen in bursts during volatile times. Reporting only one event per 1000 ms can miss many liquidations, leading to serious undercounting.
Crypto Market Shows Signs of Recovery After Crash
By Monday, the total crypto market cap rose above $3.85 trillion. This recovered more than half of the $400 billion lost on Friday. Futures Open Interest (OI) also increased to $164 billion, showing renewed trader interest and long positions.
Futures OI had dropped from $220.36 billion on Friday to $154.88 billion on Saturday, a decline of nearly $66 billion. This reflects the notional value of open contracts, which is different from liquidation amounts.
If underreporting is true, it could mean higher leverage risk during the market recovery. This may affect how institutional investors hedge their positions as the market cycle approaches a bottom.
