Hyperliquid Founder Accused Binance of Lack of Transparency

In recent days, significant developments have occurred for investors following the sharp declines in the crypto market. The fluctuations in Bitcoin and altcoins have brought discussions about the transparency of liquidation data to the forefront. Jeff, the founder of Hyperliquid, accused the centralized exchange Binance of underreporting user liquidations.

According to Jeff's social media posts, Binance sometimes reports user liquidations as up to 100 times lower than they actually are. Hyperliquid offers a completely on-chain system that ensures every order, transaction, and liquidation is verifiable by everyone. Jeff stated, “This transparency should be the foundation of fairness and trust in the financial system,” expressing his criticisms towards centralized exchanges, especially Binance.

According to the data shared, Binance reports thousands of liquidation orders occurring within the same second as a single transaction. This has led to criticisms suggesting that during certain market conditions, it results in reporting a deficiency of up to 100 times. Jeff referenced the “Liquidation Order Streams” document on Binance’s developer page, stating, “Some centralized exchanges are seriously underreporting user liquidations.” These statements came on the heels of backlash Binance received during the recent market crash due to stop orders failing to execute and missing liquidation data.

Jeff expressed that Hyperliquid's on-chain liquidation system demonstrates how superior DeFi (decentralized finance) is compared to centralized exchanges. “Hyperliquid records all transactions on-chain, and every user can verify in real-time whether the system’s collateral status and liquidations are being processed fairly,” he said. He emphasized that such transparency is not only a matter of trust but also a cornerstone of the financial infrastructure of the future.

Jeff concluded his statement with, “I hope the industry recognizes how important transparency is in the new financial system and that other platforms take steps in this direction.” Hyperliquid managed to survive the recent market crash with zero bad debt and full uptime. Jeff's criticisms of Binance have resonated widely within the crypto community, and it is believed that investors should monitor this issue closely.