{"id":16984,"date":"2025-10-14T13:58:37","date_gmt":"2025-10-14T11:58:37","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16984"},"modified":"2025-10-14T13:58:37","modified_gmt":"2025-10-14T11:58:37","slug":"startup-founders-spar-over-transparency-in-liquidation-processes","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/14\/startup-founders-spar-over-transparency-in-liquidation-processes\/","title":{"rendered":"Startup Founders Spar Over Transparency in Liquidation Processes"},"content":{"rendered":"

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Throughout the previous week’s market plunge that witnessed HYPE values decline towards $20, Hyperliquid allegedly sustained 100% operational uptime with no bad debt, as reported by the platform\u2019s creator, Jeff Yan.\u00a0<\/span><\/p>\n

Nevertheless, in a message shared on the social media platform X (previously known as Twitter), Yan also expressed apprehensions regarding certain <\/span>centralized exchanges<\/span><\/a> (CEXs), indicating they may have understated liquidation figures during this tumultuous period.<\/span><\/p>\n

The Liquidation Discussion<\/span><\/h2>\n

In his comments, the platform\u2019s creator emphasized that Hyperliquid functions on a blockchain where every order, trade, and liquidation happens transparently <\/span>on-chain<\/span><\/a>, enabling anyone to verify these operations without permission.\u00a0<\/span><\/p>\n

Related Reading<\/span><\/h2>\n<\/p>\n

Yet, Yan observed a concerning pattern among specific CEXs, which he argues publicly showcase a significant underreporting of user liquidations. He cited Binance as an example, highlighting that even when numerous liquidation orders happen concurrently, only one is documented due to restrictions in its data feed.\u00a0<\/span><\/p>\n

The platform\u2019s founder contended that this can obscure the true quantity of liquidations, particularly during intense volatility events such as the recent flash crash, potentially leading to an underreporting factor of 100 times. In reaction to Yan\u2019s critique, Binance\u2019s former CEO and founder Changpeng Zhao (CZ) addressed the matter, <\/span>asserting<\/span><\/a>,\u00a0<\/span><\/p>\n

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Some individuals inquire why #BNB is exceptionally resilient? While others attempted to disregard, conceal, shift blame, or undermine competitors, the key players in the @BNBChain ecosystem (Binance, Venus, and others) invested hundreds of millions from their own resources to PROTECT USERS.<\/span><\/p>\n<\/blockquote>\n

From Binance To Hyperliquid<\/span><\/h2>\n

This exchange occurs shortly after a significant decline in overall cryptocurrency prices last Friday, which saw the Bitcoin (BTC) value tumble from $122,000 to $102,000 on platforms like Binance, resulting in the liquidation of over $19 billion in leveraged positions.\u00a0<\/span><\/p>\n

Amidst the turmoil, Jeff <\/span>pointed out <\/span><\/a>that Hyperliquid reportedly achieved a trading volume between $50 and $70 billion without any interruptions or disturbances. In contrast, Binance encountered short-term technical difficulties that prevented some users from closing their positions.<\/span><\/p>\n

Related Reading<\/span><\/h2>\n<\/p>\n

Hyperliquid\u2019s founder has a past with Binance, having <\/span>engaged <\/span><\/a>in the Binance Labs Investment Incubation Program in 2018. During this timeframe, he and co-founder Brian Wong aimed to create Deaux, a decentralized prediction market product.\u00a0<\/span><\/p>\n

Their aspiration was to establish a platform that enabled collaborative wagering within a global liquidity pool using cryptocurrency. Throughout their tenure in the Binance Incubation Program, they highlighted the significance of user experience while investigating the advantages of decentralization.\u00a0<\/span><\/p>\n

Their product aimed to replicate the user-centric interface of centralized exchanges like Binance\u2014providing <\/span>low fees and immediate feedback<\/span><\/a>\u2014while guaranteeing security through blockchain smart contracts and incorporating decentralized democratic voting for resolution.<\/span><\/p>\n

The daily chart illustrates HYPE\u2019s price recovery. Source: HYPEUSDT on TradingView.com<\/a><\/figcaption><\/figure>\n

As of writing, HYPE continues to show weekly declines of 14%, trading at approximately $41.88. Nonetheless, it has bounced back by over 4% in the past few hours, although all-time high figures are still 28% away.\u00a0<\/span><\/p>\n

Featured image from DALL-E, chart from TradingView.com\u00a0<\/span><\/p>\n<\/div>\n


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“`html Throughout the previous week’s market plunge that witnessed HYPE values decline towards $20, Hyperliquid allegedly sustained 100% operational uptime with no bad debt, as reported by the platform\u2019s creator, Jeff Yan.\u00a0 Nevertheless, in a message shared on the social media platform X (previously known as Twitter), Yan also expressed apprehensions regarding certain centralized exchanges<\/p>\n","protected":false},"author":3,"featured_media":16985,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[3905],"class_list":["post-16984","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","tag-gptreturn-a-list-of-comma-separated-tags-from-this-title-founders-clash-over-liquidation-transparency-gpt"],"yoast_head":"\nStartup Founders Spar Over Transparency in Liquidation Processes - WSJ-Crypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/14\/startup-founders-spar-over-transparency-in-liquidation-processes\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Startup Founders Spar Over Transparency in Liquidation Processes - 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