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 submit on X, Yan mentioned Hyperliquid’s absolutely on-chain liquidation knowledge couldn’t be in contrast with what he known as “underreported CEX liquidations.” He argued that on-chain techniques permit 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 example.
“Even when there are literally thousands of liquidation orders in the identical second, just one is reported. As a result of liquidations occur in bursts, this might simply be 100x underreporting beneath some circumstances.”
Hyperliquid’s absolutely onchain liquidations can’t be in contrast with underreported CEX liquidations
Hyperliquid is a blockchain the place each order, commerce, and liquidation occurs onchain. Anybody can permissionlessly confirm the chain’s execution, together with all liquidations and their… pic.twitter.com/K5sv74LJgO— jeff.hl (@chameleon_jeff) October 13, 2025
CZ: Binance Prioritized Consumer Safety Throughout Market Turmoil
Yan mentioned transparency and neutrality had been key benefits of decentralized infrastructure and urged the business to undertake greater reporting requirements.
Zhao, identified broadly as CZ, responded with a submit that appeared to deal with the criticism not directly. “Some folks ask why is #BNB so robust?” he wrote. “Whereas others tried to disregard, conceal, shift blame, or assault rivals, 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.
Some folks ask why is #BNB so robust?
Whereas others tried to disregard, conceal, shift blame, or assault rivals, 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.
Completely different worth techniques.https://t.co/zb0UIBfcBn
— CZ
BNB (@cz_binance) October 13, 2025
He ended the submit by saying “totally different worth techniques,” a comment interpreted by many as a reference to Hyperliquid’s feedback.
Market Rout Sparks Tensions Between Binance, Hyperliquid
The alternate 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.
Throughout the chaos, Hyperliquid reportedly dealt with $50–$70b in buying and selling quantity with none downtime or disruption. In the meantime, Binance skilled non permanent technical points that left some customers unable to shut positions for almost an hour. In consequence, frustration unfold rapidly throughout social media, with merchants saying the delays deepened their losses.
CZ Clarifies Binance Has No Present Ties to Hyperliquid Regardless of Previous Incubation Hyperlinks
Zhao additionally reshared a submit evaluating liquidation charges, which confirmed Binance liquidating 60% of lengthy positions whereas decentralized exchanges similar to Hyperliquid noticed nearer to 90%.
Final week, Zhao addressed hypothesis that Binance has funding ties to Hyperliquid.
He clarified that whereas Jeff Yan participated in Binance Labs’ first incubation program in 2018 via a startup known as YZiLabs, the corporate failed and Binance didn’t get better its funding.
Hyperliquid has grown quickly since its launch, working by itself Layer-1 blockchain and rating among the many most lively decentralized perpetual buying and selling platforms. In keeping with DefiLlama, it dealt with $319b in buying and selling quantity in July, contributing to a report $487b throughout DeFi perpetual markets that month.
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