Quick Breakdown
- Hyperliquid CEO Jeff Yan pushes for onchain transparency in DeFi.
- Says Binance underreports liquidations by up to 100x.
- Calls transparency and neutrality key to crypto’s financial future.
Jeff Yan, CEO and founder of Hyperliquid, has criticized major centralized exchanges (CEXs) for severely underreporting liquidation data, calling for greater transparency across the crypto trading industry. Yan emphasized that onchain infrastructure, where all transactions and liquidations are publicly verifiable, is the only path toward a fair and transparent financial system.
Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations
Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
Fully onchain transparency sets hyperliquid apart
Yan explained that on Hyperliquid’s blockchain, every order, trade, and liquidation occurs fully onchain, allowing anyone to verify the system’s execution and solvency in real time. This transparency, he said, ensures fair execution for all users and eliminates the need for trust in centralized intermediaries.
“Anyone can permissionlessly verify every liquidation and its fairness,” Yan said, adding that transparency and neutrality are foundational principles for building the financial infrastructure of the future. The platform’s open-access model, he argued, demonstrates how DeFi can outperform centralized platforms in accountability and reliability.
Binance accused of underreporting liquidations
Yan further pointed out that some centralized exchanges, including Binance, are known to dramatically underreport user liquidations. Even during extreme market volatility, when thousands of liquidation orders can occur within seconds, Binance reportedly logs only one liquidation publicly.
He warned that this could mean actual liquidation events are underreported by as much as 100x, misleading users about true market conditions.
Yan concluded by urging the broader crypto industry to embrace onchain transparency as a defining standard. “Transparency and neutrality must be core features of the new financial system,” he said.
Meanwhile, crypto researcher Patrick Scott described Hyperliquid as “the most investable perpetual DEX today,” noting that its full onchain transparency gives it a structural edge over hybrid or partially centralized competitors. Scott points out that while Aster’s trading volume skyrocketed from $11 billion to $270 billion in just one week, such growth is likely an anomaly fueled by aggressive incentive campaigns.
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