{"id":89857,"date":"2025-10-13T18:00:00","date_gmt":"2025-10-13T15:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89857"},"modified":"2025-10-13T18:02:22","modified_gmt":"2025-10-13T15:02:22","slug":"hyperliquid-co-founder-says-cex-liquidation-totals-may-be-underreported-by-up-to-100x","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/hyperliquid-co-founder-says-cex-liquidation-totals-may-be-underreported-by-up-to-100x\/","title":{"rendered":"Hyperliquid co-founder says CEX liquidation totals may be underreported by up to 100x"},"content":{"rendered":"<p>Centralised exchanges (CEXs) may be materially underreporting liquidation data, warned <a href=\"https:\/\/forklog.com\/en\/news\/the-price-of-popularity-and-a-lesson-for-all-hyperliquid\">Hyperliquid<\/a> co-founder Jeff Yan. In bouts of volatility, he said, actual volumes can be up to 100 times the reported figures.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Hyperliquid\u2019s fully onchain liquidations cannot be compared with underreported CEX liquidations<\/p>\n<p>Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain\u2019s execution, including all liquidations and their\u2026 <a href=\"https:\/\/t.co\/K5sv74LJgO\">pic.twitter.com\/K5sv74LJgO<\/a><\/p>\n<p>\u2014 jeff.hl (@chameleon_jeff) <a href=\"https:\/\/twitter.com\/chameleon_jeff\/status\/1977578610329534958?ref_src=twsrc%5Etfw\">October 13, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Yan noted that some CEXs, including Binance, disclose only one order per second even when thousands occur in that interval, citing the exchange\u2019s public documentation. Because liquidations tend to arrive in bursts, this can severely skew the statistics.<\/p>\n<p>According to CoinGlass, on 11 October positions of more than 1.6m traders worth $19.1bn were liquidated in total. However, the firm\u2019s analysts <a href=\"https:\/\/x.com\/coinglass_com\/status\/1976796969961193641\">noted<\/a> the true sum was \u201clikely much higher\u201d, because Binance limits reporting.<\/p>\n<p>By comparison, in the past 24 hours 210,930 positions worth $693.49m were forcibly closed.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-6fb4676c227ecc5c-6759245525861072.webp\" alt=\"\u0421\u043d\u0438\u043c\u043e\u043a \u044d\u043a\u0440\u0430\u043d\u0430 2025-10-13 155828\" class=\"wp-image-267481\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.coinglass.com\/LiquidationData\">CoinGlass<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">CEX troubles<\/h2>\n<p>During the market rout, centralised platforms ran into difficulties. Binance, in particular, faced criticism amid numerous outage reports. Co-founder of the leading CEX <a href=\"https:\/\/forklog.com\/en\/news\/yi-he-the-influential-force-behind-binance\">Yi He<\/a> said the exchange\u2019s core systems operated stably.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zh\" dir=\"ltr\">\u5e02\u573a\u6709\u7b2c\u4e00\u7c7bFUD\uff1a\u5e01\u5b89\u5b95\u673a\uff0c\u4e8b\u5b9e\uff1a\u5728\u4e8b\u4ef6\u671f\u95f4\uff0c\u5e01\u5b89\u6838\u5fc3\u5408\u7ea6\u548c\u73b0\u8d27\u64ae\u5408\u5f15\u64ce\u53caAPI\u4ea4\u6613\u5747\u4fdd\u6301\u7a33\u5b9a\u8fd0\u884c\u3002\u7ecf\u6570\u636e\u7edf\u8ba1\uff0c\u5e01\u5b89\u5e73\u53f0\u5904\u7406\u7684\u5f3a\u5236\u5e73\u4ed3\u91d1\u989d\u5360\u603b\u4ea4\u6613\u91cf\u6bd4\u4f8b\u5904\u4e8e\u6b63\u5e38\u4f4e\u4f4d\uff0c\u8868\u660e\u672c\u6b21\u6ce2\u52a8\u4e3b\u8981\u7531\u5e02\u573a\u6574\u4f53\u884c\u60c5\u63a8\u52a8\u3002\u2026 <a href=\"https:\/\/t.co\/6zDA27B80S\">https:\/\/t.co\/6zDA27B80S<\/a><\/p>\n<p>\u2014 Yi He (@heyibinance) <a href=\"https:\/\/twitter.com\/heyibinance\/status\/1977449002116473064?ref_src=twsrc%5Etfw\">October 12, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>She acknowledged brief delays in \u201csome functional modules\u201d and price decoupling in certain products. She said the exchange paid users more than $280m in compensation.<\/p>\n<p>Hyperliquid said its blockchain suffered no outages or latency despite record traffic.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">During the recent market volatility, the Hyperliquid blockchain had zero downtime or latency issues despite record traffic and volumes. HyperBFT consensus and execution handled the spike in throughput gracefully. <\/p>\n<p>This was an important stress test proving that Hyperliquid&#8217;s\u2026<\/p>\n<p>\u2014 Hyperliquid (@HyperliquidX) <a href=\"https:\/\/twitter.com\/HyperliquidX\/status\/1976888543948816750?ref_src=twsrc%5Etfw\">October 11, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The company called it an \u201cimportant stress test\u201d that proved the reliability and scalability of its decentralised financial system.<\/p>\n<h2 class=\"wp-block-heading\">Three causes of the sell-off<\/h2>\n<p>Former BitForex CEO Garrett Jin blamed the crypto-market slump on three factors: an escalating US\u2013China trade war, overheated markets and irresponsible behaviour by crypto exchanges.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">7\/ But on Oct 11, the market saw extreme volatility, with many major altcoins dropping by 80%.<br \/>Some traders using just 0.2x or 0.3x leverage still got liquidated.<br \/>Can every trader sit in front of the screen 24\/7 and manually close positions during chaos? Obviously not.<br \/>If\u2026<\/p>\n<p>\u2014 Garrett (@GarrettBullish) <a href=\"https:\/\/twitter.com\/GarrettBullish\/status\/1977703002267140170?ref_src=twsrc%5Etfw\">October 13, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Jin noted that even before the crash, technical indicators\u2014including MACD\u2014were flashing overbought for tech stocks and major cryptocurrencies.<\/p>\n<p>The worsening US\u2013China trade conflict darkened sentiment, prompting investors to pull capital from risk.<\/p>\n<p>Crypto prices and US tech stocks have historically moved in tandem, he said, allowing stress to spill from one to the other ahead of the plunge.<\/p>\n<p>The rout was driven not only by macro forces but by internal fragility. Equity and crypto markets were crowded with leveraged longs, creating conditions for a crisis reminiscent of the US stock-market crash in March 2020.<\/p>\n<p>According to Jin, unlike equities, most cryptocurrencies lack intrinsic value and depend on investor sentiment. Exchanges offering 5x\u2013100x leverage on such volatile assets foment liquidity crises.<\/p>\n<p>He recalled that during the 11 October panic many altcoins fell by 80%. Liquidations hit even traders with minimal 0.2x\u20130.3x leverage. Not everyone can sit in front of a screen around the clock to close positions manually, he stressed.<\/p>\n<p>In Jin\u2019s view, the problem is that exchanges dangle high leverage to boost profits while shirking responsibility.<\/p>\n<p>To restore trust and foster healthier growth, exchanges should set up stabilisation funds, he argued, akin to stock\u2011market mechanisms in the United States that can supply liquidity during crises.<\/p>\n<h2 class=\"wp-block-heading\">The \u201cinsider whale\u201d<\/h2>\n<p>Jin is allegedly the mysterious whale on Hyperliquid, according to an investigation by on-chain sleuth Eye.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ An investigation into the alleged identity of the mysterious Hyperliquid\/Hyperunit whale, who holds over 100,000 BTC. Recently, he sold over $4.23B in BTC to acquire ETH and is the same person behind the $735M BTC short order placed on the same platform. <a href=\"https:\/\/t.co\/WeNvmiYP8v\">pic.twitter.com\/WeNvmiYP8v<\/a><\/p>\n<p>\u2014 Eye (@eyeonchains) <a href=\"https:\/\/twitter.com\/eyeonchains\/status\/1977071983172231507?ref_src=twsrc%5Etfw\">October 11, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The trader opened a 10x\u2011levered perpetual short on bitcoin on the DEX. The position will be liquidated if bitcoin reaches $125,500.<\/p>\n<p>Attention focused on the user after prior trades. He made $192m by opening a short 30 minutes before Donald Trump\u2019s tariff announcement, which sent markets tumbling. The community dubbed him the \u201cinsider whale\u201d.<\/p>\n<p>Eye presented a transaction analysis. The whale\u2019s wallet received fee funds from an address linked to the ENS ereignis.eth. That name, in turn, is associated with garrettjin.eth, which points to Jin\u2019s X account.<\/p>\n<p>The former BitForex CEO denied the claims. Binance founder Changpeng Zhao reposted the investigation. In response, Jin said he had no connection with the Trump family and that this was not insider trading.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Hi <a href=\"https:\/\/twitter.com\/cz_binance?ref_src=twsrc%5Etfw\">@cz_binance<\/a>, thanks for sharing my personal and private information. To clarify, I have no connection with the Trump family or <a href=\"https:\/\/twitter.com\/DonaldJTrumpJr?ref_src=twsrc%5Etfw\">@DonaldJTrumpJr<\/a> \u2014 this isn\u2019t insider trading.<\/p>\n<p>\u2014 Garrett (@GarrettBullish) <a href=\"https:\/\/twitter.com\/GarrettBullish\/status\/1977588204409921590?ref_src=twsrc%5Etfw\">October 13, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On 13 October, bitcoin <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-recovers-above-115000\">rebounded<\/a> above $115,000, and Ethereum rose to $4,190.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CEXs may be materially underreporting liquidations by up to 100x, Hyperliquid co-founder Jeff Yan warned.<\/p>\n","protected":false},"author":1,"featured_media":89858,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Hyperliquid\u2019s Jeff Yan says CEX liquidation totals may be underreported by up to 100x.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,787,1823,1138],"class_list":["post-89857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-dex","tag-hyperliquid","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"276","promo_type":"1","layout_type":"1","short_excerpt":"Hyperliquid\u2019s Jeff Yan says CEX liquidation totals may be underreported by up to 100x.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89857"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89857\/revisions"}],"predecessor-version":[{"id":89859,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89857\/revisions\/89859"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89858"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}