Jeff Yan, co-founder and CEO of Hyperliquid, has raised concerns over how centralized crypto exchanges (CEXes) report liquidation data. He pointed out that Binance’s system only reports the latest liquidation per second, leading to severe underreporting during fast-moving market crashes where hundreds of liquidations can occur in seconds.
Yan’s criticism reflects broader issues among CEXes, many of which throttle real-time data to maintain performance but end up obscuring true market conditions. This underreporting can mislead traders about the full extent of market liquidations and volatility.
During a recent flash crash, over $19B in liquidations occurred, marking the largest in crypto history. Binance faced backlash as some altcoins briefly showed $0 prices due to display issues, and many traders reported functional lags during the crash. In contrast, decentralized platforms like Hyperliquid maintained stable operations with no downtime, demonstrating greater resilience during high market stress.
This transparency gap highlights the challenges centralized platforms face amid increasing demand for trust and real-time data accuracy from the crypto trading community.
