Hyperliquid’s Jeff Slams Binance Over Fake Liquidation Data

Jeff Yan, founder of the decentralized exchange Hyperliquid, recently criticized Binance and other exchanges for under-reporting liquidation data. His comment came three days following an over 15% crypto market crash that happened on October 10, 2025.

Criticized for False Data Report

Via a post on X (formerly Twitter), Yan contrasted Hyperliquid’s fully on-chain liquidation system with the opaque reporting practices of centralized exchanges. He explained that on Hyperliquid, every order, trade, and liquidation is executed and recorded on-chain, allowing any user to verify transactions, user liquidations, and the platform’s solvency in real time. He said:

“Transparency and neutrality are key reasons that fully on-chain DeFi is the ideal infrastructure for global finance.”

Citing Binance as an example, he noted that some centralized exchanges deliberately underreport liquidations, masking true market activity. Notably, according to Binance’s documentation, even if thousands of liquidation orders occur within one second, only one order per second is reported. 

Yan argued this could lead to up to 100x underreporting, especially during periods of high market volatility as experienced by the crypto market a few days ago. He concluded by expressing hope that the broader crypto industry would embrace transparency as important values for the future of global finance.

CZ Defends Binance

Shortly after Yan criticized central exchanges for under-reporting liquidation data, Binance’s co-founder Changpeng Zhao posted a seeming response on X. He noted Binance ecosystem’s strength and the team’s willingness to protect users with their own funds.

Notably, due to technical modules that malfunctioned during the October-10 crypto crash, some Binance users incurred losses. However, following the incident and subsequent investigation, the exchange refunded affected customers via a $283 million compensation plan.

Citing the compensation initiative, CZ  added  that “others tried to ignore, hide, shift blame, or attack competitors.” Though the post did not name anyone directly, users believe it’s a subtle response to Yan’s criticism, given the timing of the post.

Some people ask why is #BNB so strong?

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.

Different value systems. 💪 https://t.co/zb0UIBfcBn

— CZ 🔶 BNB (@cz_binance) October 13, 2025

Meanwhile, earlier, CZ addressed his connection with the Hyperliquid founder during an interview with Streamer Threadguy on October 11. He clarified that Jeff Yan had participated in the first season of Binance Incubator program. Still, they had never met in person.

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