Jeff Yan – founder of Hyperliquid, a decentralized exchange (DEX) platform that is attracting a lot of attention from global crypto investors – has just attracted attention when he publicly criticized many centralized exchanges (CEX) for “severely misreporting user liquidation data”. This statement not only stirred up the crypto community but also rekindled the old debate between two financial models: decentralized (DeFi) and centralized (CeFi).
According to Jeff Yan, the fact that CEX exchanges “hide” the actual liquidation scale not only damages user trust but also threatens the fairness of the market. He calls on the entire industry to move towards transparency and neutrality, considering this as the new standard of global finance in the blockchain era.
CEX accused of reporting false liquidation data up to 100 times
In his latest post on social network X (formerly Twitter), Jeff Yan stated:
“Hyperliquid’s onchain liquidations are fully transparent, with each transaction verifiable. But CEX data is severely underreported. For example, Binance can have thousands of liquidations in a second, but the system only shows a single order. This means the actual data can be off by up to 100x.”
This allegation caught the attention of the crypto community, especially after the market sweep on the morning of October 11. At that time, Binance only recorded about 2.3 billion USD in liquidations, while onchain data from Hyperliquid showed the figure exceeded 10 billion USD – a difference of nearly 5 times.
Jeff Yan stressed that in a market that is moving towards decentralized trust, “number-making” is unacceptable. He said that “neutrality and transparency must become the soul of blockchain finance,” similar to the way the global banking system is being called for reform under President Donald Trump, who has pledged to promote digital financial transparency standards after his re-election in late 2024.
Hyperliquid is a decentralized, high-speed, intermediary-free trading platform where all data is recorded transparently on the chain . Unlike many other DEXs that have performance difficulties, Hyperliquid uses its own layer technology to process thousands of transactions per second without sacrificing decentralization. This has helped the platform quickly become a real rival to CEX giants such as Binance, OKX or Bybit.
