Jeff

Hyperliquid

Hyperliquid co-founder and CEO Jeff Yan claimed that the way centralized crypto exchanges, and Binance specifically, report liquidation data likely underrepresents the true scale of losses during major market sell-offs.
Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer">BTC</a>) fell to $102,000 on Friday after <a href="https://cointelegraph.com/news/trump100-tariffs-china-bitcoin-plummets-110k" rel="noopener noreferrer nofollow" target="_self">US President Donald Trump announced</a> sweeping tariffs on China. Ether (<a href="/ethereum-price" rel="noopener noreferrer">ETH</a>) also dropped to $3,500, while Solana (<a href="/solana-price-index" rel="noopener noreferrer">SOL</a>) slipped below $140 amid a marketwide sell-off.
According to data from CoinGlass, $16.7 billion worth of long positions and $2.46 billion in short positions were liquidated on Friday, <a href="https://cointelegraph.com/news/bitcoin-wobbles-110k-trader-says-20b-liquidation-rout-not-bottom" rel="noopener noreferrer nofollow" target="_self">marking the largest liquidation event in crypto history.</a>
In a Monday X <a href="https://x.com/chameleon_jeff/status/1977578610329534958" rel="noopener noreferrer nofollow" target="_blank">post</a>, Yan pointed to a documentation <a href="https://developers.binance.com/docs/derivatives/usds-margined-futures/websocket-market-streams/Liquidation-Order-Streams#stream-description" rel="noopener noreferrer nofollow" target="_blank">page</a> on the world’s top crypto exchange, Binance, explaining that the platform will only include the latest liquidation happening in each second interval in the order snapshot stream.
The stream provides real-time updates on forced liquidations. While batching liquidations this way helps performance, Yan said the system likely results in major underreporting during periods of heavy volatility, when there can be more than 100 liquidations per pair per second.
“Because liquidations happen in bursts, this could easily be 100x under-reporting under some conditions,“ Yan wrote.
Yan’s statement echoed a Saturday X <a href="https://x.com/coinglass_com/status/1976796969961193641" rel="noopener noreferrer nofollow" target="_blank">post</a> from crypto data platform CoinGlass. The platform said that “the actual [liquidated] amount was likely much higher” since “Binance only reports one liquidation order per second.”
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 <img alt="Centralized exchanges face claims of massive liquidation undercounts" src="https://s3.cointelegraph.com/uploads/2025-10/0199dc8f-b9b5-7121-a02e-04cebc7f03f8" title="">
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 Source: <a href="https://x.com/coinglass_com/status/1976796969961193641" rel="noopener noreferrer nofollow" target="https://x.com/coinglass_com/status/1976796969961193641">CoinGlass</a>
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Related: <a href="https://cointelegraph.com/news/1-8-billion-leveraged-positions-liquidated-final-flush-more-to-come" rel="noopener noreferrer nofollow" target="_self">Crypto liquidations hit $1.8B in a day: Final flush or more to come?</a>
Yan’s comments follow over 1,000 Hyperliquid (HYPE) wallets being completely wiped out in the market crash on Friday. According to Lookonchain <a href="https://x.com/lookonchain/status/1977006597085053039" rel="noopener noreferrer nofollow" target="_blank">data</a>, over 6,300 wallets are in the red with combined losses exceeding $1.23 billion.
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 <img alt="Centralized exchanges face claims of massive liquidation undercounts" src="https://s3.cointelegraph.com/uploads/2025-10/0199dc8b-6a42-76c5-8a66-1216581f0016" title="">
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 Total crypto liquidations chart. Source: <a href="https://www.coinglass.com/LiquidationData" rel="noopener noreferrer nofollow" target="_blank">CoinGlass</a>
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Related: <a href="https://cointelegraph.com/news/how-to-read-a-bitcoin-liquidation-map-without-getting-liquidated" rel="noopener noreferrer nofollow" target="_self">The secret map whales use to liquidate you (learn how to read it)</a>
<h2 id="centralized-finance-stumbled">Centralized finance stumbled</h2>
Centralized crypto trading platforms ran into numerous issues during the flash crash. The world’s top crypto exchange, Binance, in particular, has attracted considerable criticism over multiple reported issues.
In a Sunday X <a href="https://x.com/heyibinance/status/1977449002116473064?s=19" rel="noopener noreferrer nofollow" target="_blank">post</a>, Binance CEO Yi He said Binance’s core contract and spot matching engines, as well as API trading, remained stable throughout the event. She admitted, however, that “some individual functional modules of the platform did experience brief lags, and certain wealth management products experienced de-pegging.”
Still, she claimed that depegging events did not cause the market crash and that the peg happened because of, and after, the downturn itself. She also said that “Binance initiated and completed compensation” for users affected by the depegging, which amounted to over $280 million.
Widespread reports indicate that the price of some major altcoins <a href="https://cointelegraph.com/news/why-did-some-altcoins-on-binance-crash-to-zero" rel="noopener noreferrer nofollow" target="_self">reached $0 on Binance at the time</a> of the mass liquidations. Pseudonymous crypto influencer Hanzo shared his experience during the downtime:
<blockquote>
 “On Binance, buttons stopped working. Stop orders froze, limit orders hung, only liquidations were executed perfectly.“
</blockquote>
Binance later <a href="https://cointelegraph.com/news/binance-tokens-not-crash-0-display-issue" rel="noopener noreferrer nofollow" target="_self">said the anomaly was a “display issue,</a>” caused by changes to minimum price decimals for pairs such as IOTX/USDT, and not actual market data:
<blockquote>
 “Certain trading pairs, such as IOTX/USDT, recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero, which is a display issue and not due to an actual $0 price.”
</blockquote>
<h2 id="defi-platforms-show-greater-resilience">DeFi platforms show greater resilience</h2>
The Ethena USD (<a href="/ethena-usde-price-index" rel="noopener noreferrer">USDE</a>) <a href="https://cointelegraph.com/learn/articles/stablecoins-101-what-are-crypto-stablecoins-and-how-do-they-work" rel="noopener noreferrer nofollow" target="_self">stablecoin</a> maintained its peg on the <a href="https://cointelegraph.com/learn/articles/defi-101" rel="noopener noreferrer nofollow" target="_self">decentralized finance (DeFi)</a> protocol Curve (CURV), but it went severely off-peg on Binance and <a href="https://cointelegraph.com/learn/articles/bybit-review" rel="noopener noreferrer nofollow" target="_self">competing exchange Bybit</a>. In a Saturday X <a href="https://x.com/hosseeb/status/1977370087800889469" rel="noopener noreferrer nofollow" target="_blank">post</a>, Haseeb Qureshi — a managing partner at crypto venture capital fund Dragonfly — pointed out that USDE hit $0.95 on Bybit and well under $0.70 on Binance, but did not lose its peg on Curve.
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 <img alt="Centralized exchanges face claims of massive liquidation undercounts" src="https://s3.cointelegraph.com/uploads/2025-10/0199dd1a-6620-70e1-9625-83349609a6fd" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/hosseeb/status/1977370087800889469" rel="noopener noreferrer nofollow" target="_blank">Haseeb Qureshi</a>
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Guy Young, the founder of Ethena Labs, said that <a href="https://cointelegraph.com/news/usde-depeg-oracle-issues-ethena-founder" rel="noopener noreferrer nofollow" target="_self">USDe minting and redeeming worked “perfectly”</a> during Friday’s flash crash. Data he shared showed that $2 billion in USDe was redeemed during 24 hours across crypto exchanges, including Curve, Fluid and Uniswap.
Tom Cohen, head of investment and trading at quantitative crypto asset management firm Algoz, told Cointelegraph that “the start can be traced to roughly $60–$90 billion of USDe simultaneously dumped onto Binance to exploit a mispricing and this triggered a series of large sell-offs.” This sell-off, he said, “moved thinly traded markets very quickly.”
Hyperliquid also pat itself on the back following the reported centralized exchange outages. The platform wrote in a Saturday X <a href="https://x.com/HyperliquidX/status/1976888543948816750" rel="noopener noreferrer nofollow" target="_blank">post</a> that ”during the recent market volatility, the Hyperliquid blockchain had zero downtime or latency issues despite record traffic and volumes.”
“This was an important stress test proving that Hyperliquid’s decentralized and fully on-chain financial system can be robust and scalable,” the post stated.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-price-prediction-altcoin-season-doubts-bitget-hodlers-digest/" rel="noopener noreferrer nofollow" target="_self">Bitcoin may move ‘very quick’ to $150K, altseason doubts: Hodler’s Digest, Sept. 28 – Oct. 4</a>

Centralized exchanges face claims of massive liquidation undercounts

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