- Jeff Yan criticizes Binance for liquidation underreporting.
- Hyperliquid offers real-time on-chain transparency.
- $19 billion market crash impacts 1.6 million traders.
Jeff Yan, the CEO of Hyperliquid, criticized Binance on October 13, 2025, over allegedly underreporting liquidation data during a recent market downturn.
Yans’ critique highlights a growing concern over transparency in centralized exchanges, sparking debate on market integrity and user protection during volatile periods.
The market witnessed a major crash on October 13, 2025, resulting in widespread liquidations. Hyperliquid’s founder, Jeff Yan, criticized Binance for allegedly underreporting liquidation data, posing transparency issues in the centralized exchanges.
Jeff Yan, CEO of Hyperliquid, highlighted discrepancies in Binance’s liquidation reporting, claiming that the exchange’s practices obscure actual trading outcomes. Binance has not made a direct response to Yan’s criticisms, leading to broader industry discussions. Yan emphasized, “Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations. Anyone can permissionlessly verify the chain’s execution… Some CEXs publicly document that they dramatically underreport user liquidations.” Source
This has impacted the cryptocurrency sector significantly, with over 1.6 million traders affected during the market crash. The transparency issues raised prompted scrutiny of Binance’s user protection efforts, considering their pledge of up to $283 million in compensation.
The financial implications extend further with the depegging of Binance’s assets like USDe and BnSOL. Hyperliquid itself reported over $10.3 billion in liquidations, showcasing the severity and highlighting the need for transparency in market practices.
The debate over transparency in liquidation reporting affects future regulatory and industry standards. As calls for on-chain transparency grow, the event underscores the importance of establishing trust in trading platforms in a volatile market environment.
The discussion raises questions about future regulations and whether the crypto industry will move towards more transparent on-chain reporting. Historical trends indicate rising advocacy for this change, potentially leading exchanges to adopt stronger transparency measures.
