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Changpeng Zhao Hits Back at Hyperliquid Founder Flagging Transparency Issues at CEXs

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Changpeng Zhao pushed again Monday as Hyperliquid co-founder Jeff Yan accused centralized exchanges like Binance of underreporting consumer liquidations throughout final week’s crypto market crash.

In a put up on X, Yan mentioned Hyperliquid’s totally on-chain liquidation knowledge couldn’t be in contrast with what he referred to as “underreported CEX liquidations.” He argued that on-chain methods enable anybody to confirm trades, orders, and liquidations in actual time, guaranteeing transparency and equity for customers.

“Some CEXs publicly doc that they dramatically underreport consumer liquidations,” Yan wrote, pointing to Binance for instance.

“Even if there are literally thousands of liquidation orders in the identical second, just one is reported. Because liquidations occur in bursts, this might simply be 100x underreporting beneath some situations.”

CZ: Binance Prioritized User Protection During Market Turmoil

Yan mentioned transparency and neutrality have been key benefits of decentralized infrastructure and urged the trade to undertake greater reporting requirements.

Zhao, recognized extensively as CZ, responded with a put up that appeared to deal with the criticism not directly. “Some individuals ask why is #BNB so robust?” he wrote. “While others tried to disregard, cover, shift blame, or assault opponents, the important thing @BNBChain ecosystem gamers (Binance, Venus, and extra) took a whole bunch of tens of millions out of their very own pockets to PROTECT USERS,” he mentioned.

He ended the put up by saying “completely different worth methods,” a comment interpreted by many as a reference to Hyperliquid’s feedback.

Market Rout Sparks Tensions Between Binance, Hyperliquid

The trade of posts adopted the Oct. 10–11 market crash that despatched shockwaves via the crypto sector. Bitcoin plunged from $122,000 to $109,000, wiping out greater than $19b in leveraged positions. CoinGlass described it as one of many largest liquidation cascades in crypto historical past, impacting over 1.6 million merchants.

During the chaos, Hyperliquid reportedly dealt with $50–$70b in buying and selling quantity with none downtime or disruption. Meanwhile, Binance skilled non permanent technical points that left some customers unable to shut positions for almost an hour. As a end result, frustration unfold rapidly throughout social media, with merchants saying the delays deepened their losses.

CZ Clarifies Binance Has No Current Ties to Hyperliquid Despite Past Incubation Links

Zhao additionally reshared a put up evaluating liquidation charges, which confirmed Binance liquidating 60% of lengthy positions whereas decentralized exchanges akin to Hyperliquid noticed nearer to 90%.

Last week, Zhao addressed speculation that Binance has investment ties to Hyperliquid.

He clarified that whereas Jeff Yan participated in Binance Labs’ first incubation program in 2018 via a startup referred to as YZiLabs, the corporate failed and Binance didn’t recuperate its funding.

Hyperliquid has grown quickly since its launch, working by itself Layer-1 blockchain and rating among the many most energetic decentralized perpetual buying and selling platforms. According to DefiLlama, it dealt with $319b in buying and selling quantity in July, contributing to a document $487b throughout DeFi perpetual markets that month.

The put up Changpeng Zhao Hits Back at Hyperliquid Founder Flagging Transparency Issues at CEXs appeared first on Cryptonews.

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