Changpeng Zhao pushed back Monday as Hyperliquid co-founder Jeff Yan accused centralized exchanges like Binance of underreporting user liquidations during last week’s crypto market crash.
In a post on X, Yan said Hyperliquid’s fully on-chain liquidation data could not be compared with what he called “underreported CEX liquidations.” He argued that on-chain systems allow anyone to verify trades, orders, and liquidations in real time, ensuring transparency and fairness for users.
“Some CEXs publicly document that they dramatically underreport user liquidations,” Yan wrote, pointing to Binance as an example.
“Even if there are thousands of liquidation orders in the same second, only one is reported. Because liquidations happen in bursts, this could easily be 100x underreporting under some conditions.”
CZ: Binance Prioritized User Protection During Market Turmoil
Yan said transparency and neutrality were key advantages of decentralized infrastructure and urged the industry to adopt higher reporting standards.
Zhao, known widely as CZ, responded with a post that appeared to address the criticism indirectly. “Some people ask why is #BNB so strong?” he wrote. “While others tried to ignore, hide, shift blame, or attack competitors, the key @BNBChain ecosystem players (Binance, Venus, and more) took hundreds of millions out of their own pockets to PROTECT USERS,” he said.
He ended the post by saying “different value systems,” a remark interpreted by many as a reference to Hyperliquid’s comments.
Market Rout Sparks Tensions Between Binance, Hyperliquid
The exchange of posts followed the Oct. 10–11 market crash that sent shockwaves through the crypto sector. Bitcoin plunged from $122,000 to $109,000, wiping out more than $19b in leveraged positions. CoinGlass described it as one of the largest liquidation cascades in crypto history, impacting over 1.6 million traders.
During the chaos, Hyperliquid reportedly handled $50–$70b in trading volume without any downtime or disruption. Meanwhile, Binance experienced temporary technical issues that left some users unable to close positions for nearly an hour. As a result, frustration spread quickly across social media, with traders saying the delays deepened their losses.
CZ Clarifies Binance Has No Current Ties to Hyperliquid Despite Past Incubation Links
Zhao also reshared a post comparing liquidation rates, which showed Binance liquidating 60% of long positions while decentralized exchanges such as Hyperliquid saw closer to 90%.
Last week, Zhao addressed speculation that Binance has investment ties to Hyperliquid.
He clarified that while Jeff Yan participated in Binance Labs’ first incubation program in 2018 through a startup called YZiLabs, the company failed and Binance did not recover its investment.
Hyperliquid has grown rapidly since its launch, operating on its own Layer-1 blockchain and ranking among the most active decentralized perpetual trading platforms. According to DefiLlama, it handled $319b in trading volume in July, contributing to a record $487b across DeFi perpetual markets that month.
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