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>>Jeff Yan of Hyperliquid argues that cryptocurrency exchanges are concealing actual market risk.

Jeff Yan of Hyperliquid argues that cryptocurrency exchanges are concealing actual market risk.

crypthub

about 21 hours ago

Centralized Exchange Practices

Jeff Yan, founder of Hyperliquid, alleges that major centralized exchanges (CEXs) significantly underreport liquidation statistics, potentially by factors as high as 100x. This deliberate underreporting creates a misleading impression of market stability. The lack of on-chain transparency makes it difficult to independently verify these figures. Yan highlights the contrast with Hyperliquid’s transparent, on-chain operations.

Recent Market Crash and Hyperliquid

A recent market crash on October 10–11, 2025, resulted in over $19 billion in liquidated futures positions. Hyperliquid experienced $10.3 billion of those liquidations, including a single liquidation exceeding $203 million. Yan emphasized Hyperliquid’s on-chain recording prevents data manipulation.

Financial Losses and User Impact

The market crash resulted in substantial financial losses for Hyperliquid users. Over 1,000 users lost all their funds, totaling $1.23 billion. A significant number of traders experienced losses exceeding $1 million.

Future Trends in Decentralized Finance

Hyperliquid advocates for transparency and neutrality to become core values within the financial system. This emphasis on open data and verifiable records could provide a competitive edge over centralized platforms. Radical transparency may become a defining advantage for decentralized platforms.