The founder of Hyperliquid criticizes CEX exchanges like Binance for hiding liquidation data.

Jeff Yan – the founder of Hyperliquid, a rising decentralized exchange platform – has publicly criticized several centralized exchanges (CEX) for “seriously misleading” user liquidation data, while also calling for the entire industry to adopt transparency and neutrality as the new standard for global finance.

CEX accused of “hiding” liquidation data up to 100 times

In a post on X, Jeff stated that some CEX exchanges only disclose a very small portion of the actual number of liquidation orders. Specifically, he gave the example:

“Even if thousands of liquidation orders occur in the same second, only one order is displayed publicly. This may cause the actual data to be reported up to 100 times lower.”

He believes that concealing data like this not only skews market perceptions but also prevents users from assessing the actual risks during periods of significant price volatility.

According to Jeff, this phenomenon is common on major exchanges like Binance – where “liquidation events occur in clusters (burst), but public data only shows them sporadically, causing the impact of the fluctuations to be artificially downplayed.”

Hyperliquid: Absolute transparency thanks to all transactions being onchain

In contrast to the centralized model, Hyperliquid operates all activities – from placing orders, matching orders to liquidation – on the blockchain. This means that:

• Anyone can verify all transactions and liquidations in real time.
• The liquidity and solvency of the system are always transparent and publicly verifiable.
• There is no intermediary that can alter, conceal, or delay data.

Jeff emphasized:

“Hyperliquid is a blockchain where all orders, trades, and liquidations occur on-chain. Anyone can verify the chain, including all liquidations and the fairness in the execution process.”

Transparency and neutrality must be the new standard of global finance

Jeff believes that these advantages are the core foundation that makes on-chain DeFi an ideal structure for the global financial system in the future.

He hopes that Hyperliquid's maintenance of absolute transparency standards will prompt the cryptocurrency industry to re-evaluate the value of neutrality, fairness, and public verifiability.

“I hope the entire industry will soon realize that transparency and neutrality are not just slogans, but essential characteristics of the new financial system.”

In the context of ongoing controversies surrounding data scandals and liquidity of CEX exchanges, fully on-chain trading models like Hyperliquid are increasingly attracting the attention of the community.

The fact that projects like Hyperliquid promote transparency mechanisms, public verification, and complete decentralization is seen as an important step to strengthen trust and reduce systemic risk in the field of decentralized finance.

Thach Sanh