Hyperliquid Co-Founder Jeff has publicly criticized certain centralized exchanges for significantly underreporting liquidation activity.
On X, Jeff said, “Hyperliquid’s fully on-chain liquidations cannot be compared with underreported CEX liquidations,” highlighting the stark difference between decentralized and centralized systems.
According to him, while thousands of liquidation orders can occur within a single second on some platforms, only one may be publicly reported. “Because liquidations happen in sudden bursts, this could easily lead to 100x under-reporting under some conditions,” he explained.
Unlike centralized platforms, Hyperliquid operates fully on-chain. Every order, trade, and liquidation is recorded on the blockchain, allowing anyone to verify trades and the system’s solvency in real time. Jeff said, “Transparency and neutrality are key reasons why fully on-chain DeFi is the ideal infrastructure for global finance.”
The criticism specifically targets how some centralized exchanges handle liquidation data. Jeff pointed to Binance, explaining that its liquidation snapshots only reflect the most recent order every 1-second interval and leave most liquidations unnoticed.
Jeff followed up by calling on the cryptocurrency industry to value transparency. “Hopefully the industry will see transparency and neutrality as important features of the new financial system, and others will follow,” he said, signaling a broader push for accountability in trading practices.
Recent market data illustrates this difference. As per Coinglass data, overall liquidations across major crypto exchanges totaled about $33.43 million, with long positions making up roughly 52% of the total.
Binance led the market with $15.25 million in liquidations, followed by Bybit at $6.77 million and OKX at $5.12 million. While most exchanges saw more long positions being liquidated, OKX and HTX had slightly more short liquidations.
Hyperliquid accounted for $922,330 in total liquidations, a small part of the market at 2.44%. In this, about $624,070 were long positions and $298,260 were shorts, meaning roughly 67% were longs.
Unlike some centralized exchanges, Hyperliquid’s fully on-chain system makes every liquidation visible and verifiable. This transparency supports Jeff’s point and shows the value of clear, auditable data in crypto markets.
