Overview

• Hyperliquid CEO Jeff Yan said on Oct. 13 that Binance underreports liquidations during volatility, potentially missing many simultaneous events.
• Binance’s documentation shows its liquidation stream only pushes the most recent event within a 1000-millisecond window and sends nothing if none occur.
• Binance has acknowledged reporting flaws, pledged up to $283 million in compensation for verified affected users, and said it will recalibrate risk management.
• The Oct. 10–11 sell-off erased more than $19 billion in positions, depegged USDe, wBETH, and BnSOL, and coincided with system degradation that hindered hedging on Binance.
• Hyperliquid positions its fully on-chain model—logging every order, trade, and liquidation in real time—as a transparency advantage that enables independent verification.