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Hyperliquid Vs Binance: Founders Clash Over Liquidation Transparency
During a recent market downturn, Hyperliquid, a decentralized trading platform, reportedly maintained 100% uptime and zero bad debt. However, Hyperliquid's founder, Jeff Yan, expressed concerns that some centralized exchanges (CEXs) may have underreported liquidation data. He claimed that on-chain transparency on Hyperliquid allows for verifiable execution of all processes, unlike some CEXs. Yan highlighted Binance as an example, suggesting their data streams can drastically underreport liquidations, potentially by a factor of 100 during high volatility. Former Binance CEO Changpeng Zhao (CZ) responded by emphasizing Binance's proactive measures to protect users during the crypto price drop, contrasting it with others' perceived inaction. The market event saw Bitcoin's price fall significantly, leading to over $19 billion in leveraged position liquidations across exchanges. Amid this volatility, Hyperliquid reportedly handled substantial trading volume without disruptions. In contrast, Binance experienced temporary technical issues that prevented some users from closing positions. Yan has a past connection to Binance, having participated in their incubation program with his co-founder to develop a decentralized prediction market. Their earlier project aimed for a user-friendly experience similar to CEXs while leveraging blockchain technology. Despite recent losses, the HYPE token has shown some recovery, though it remains below its all-time high.
