Hyperliquid vs Binance: Founders Clash Over Liquidation Transparency

During last week’s market downturn, HYPE prices dropped towards $20. Hyperliquid's founder, Jeff Yan, reported that the platform maintained 100% uptime with no bad debt.

The Liquidation Debate

Hyperliquid operates on a blockchain where all transactions are visible, allowing transparent verification.
Yan criticized certain centralized exchanges (CEXs) for potentially underreporting liquidation data during volatile events.
He cited Binance as an example, suggesting a possible underreporting factor of up to 100 times.
Binance's former CEO, Changpeng Zhao, responded by highlighting efforts to protect users.

From Binance To Hyperliquid

The recent market crash led to a significant drop in BTC prices and the liquidation of over $19 billion in leveraged positions.
Hyperliquid reportedly handled $50-$70 billion in trading volume without disruption, unlike Binance, which faced technical issues.
Jeff Yan and his co-founder Brian Wong participated in Binance Labs’ Incubation Program in 2018, aiming to develop Deaux, a decentralized prediction market product.
Their goal was to combine user-friendly interfaces with blockchain security and decentralization.

Currently, HYPE is trading at approximately $41.88, with a weekly loss of 14%, though it has recovered by over 4% recently.