Overview
- Hyperliquid founder Jeff Yan accused centralized exchanges of understating liquidation activity, saying Binance’s public feed can show only one liquidation per second and could underreport bursts by up to 100x, citing Binance documentation.
- Crypto.com CEO Kris Marszalek urged regulators to investigate the exchanges with the highest liquidations, questioning possible slowdowns, pricing against indexes, trade surveillance, and internal conflict-of-interest controls.
- Binance acknowledged platform-related issues during the sell-off, said it is reviewing affected accounts, and pledged compensation for verified platform errors, with reports citing up to $283 million.
- Traders reported frozen interfaces, failed stop-losses, and sharp depegs on major platforms, including USDe, wBETH, and BnSOL on Binance, which users say impeded efforts to manage positions during the cascade.
- Hyperliquid announced its HIP-3 upgrade to enable permissionless perpetual markets on its chain, pitching fully on-chain, verifiable order and liquidation data as an alternative to centralized reporting.