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Centralized crypto exchanges faced allegations of data misrepresentation during a major market crash on October 10–11, 2025, reportedly underreporting liquidation figures according to Hyperliquid CEO Jeff Yan.
The incident raises transparency concerns, potentially affecting trust in centralized exchanges and increasing interest in decentralized platforms offering verifiable on-chain data.
Centralized crypto exchanges are facing allegations of underreporting liquidation data during the October 10-11 market crash. Jeff Yan, founder of Hyperliquid, criticizes these practices, highlighting the opaque data practices of centralized platforms.
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The event revealed Hyperliquid's on-chain model, enabling full transparency by auditing every order and trade. Yan’s criticisms were directed at major players like Binance, alleging a concealment of user data amid significant market turmoil.
<h2 id="allegations-of-19b-liquidation-underreporting-uncovered">Allegations of $19B Liquidation Underreporting Uncovered</h2>
Centralized crypto exchanges are facing allegations of underreporting liquidation data during the October 10-11 market crash. Jeff Yan, founder of Hyperliquid, criticizes these practices, highlighting the opaque data practices of centralized platforms. As <a href="https://twitter.com/chameleon_jeff/status/1977578610329534958" rel="noopener noreferrer nofollow">Potential breakthrough in crypto markets</a> was discussed on social media, these issues became more apparent.
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The event revealed Hyperliquid's on-chain model, enabling full transparency by auditing every order and trade. Yan’s criticisms were directed at major players like Binance, alleging a concealment of user data amid significant market turmoil.
<h2 id="hyperliquid-s-10-3b-liquidation-report-spurs-industry-reform">Hyperliquid's $10.3B Liquidation Report Spurs Industry Reform</h2>
Hyperliquid reported $10.3 billion in liquidations, with BTC and ETH most affected. This transparency disparity has prompted calls for industry-wide reform to establish <a href="https://twitter.com/bangjelkoski/status/1977638293379625291" rel="noopener noreferrer nofollow">auditable standards</a> across platforms.
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Market reactions highlight regulatory challenges and calls for technological advancements to prevent similar discrepancies. The push towards real-time auditability is supported by past events where centralized exchanges faced similar scrutiny.
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 Centralized exchanges are severely underreporting liquidations. Our on-chain data shows true scale, with over $10B liquidated on Hyperliquid alone—fully auditable and transparent. True market stability requires real transparency. — Jeff Yan, Founder, Hyperliquid.
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<h2 id="past-liquidation-events-reveal-transparency-gaps">Past Liquidation Events Reveal Transparency Gaps</h2>
This incident echoes past liquidations, such as those in March 2020 and May 2021, where transparency issues were evident. Hyperliquid's model introduces a new standard, positioning on-chain evidence against traditional systems.
Experts emphasize the industry’s shift towards <a href="https://twitter.com/tiza4thepeople/status/1876677814683926951" rel="noopener noreferrer nofollow">verifiable data</a>, necessary for future stability. According to Raoul Pal, the reliance on on-chain models underscores the need for market evolution to support transparent trading environments.
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Centralized Exchanges Accused of Liquidation Underreporting

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