Откровения сооснователя Hyperliquid: Объемы ликвидаций на CEX могут быть завышены в 100 раз Translation: Co-founder of Hyperliquid Reveals: Liquidation Volumes on CEX Could Be Overstated by 100 Times

Centralized exchanges (CEX) might significantly underreport liquidation data, warned Jeff Yan, co-founder of Hyperliquid. He mentioned that during volatile periods, actual volumes can be up to 100 times higher than those reported.

Yan indicated that some CEXs, including Binance, only report a single order per second, even when thousands occur in that timeframe. He referred to the exchange’s public documentation to support this claim. Since liquidations happen in bursts, this results in a considerable distortion of statistics.

According to CoinGlass, on October 11, over 1.6 million traders faced liquidations amounting to $19.1 billion. However, analysts noted that the true total is «likely much higher,» as Binance restricts reporting.

For comparison, in the last 24 hours, 210,930 positions totaling $693.49 million have been forcibly closed.

During the market collapse, centralized platforms encountered issues. Notably, Binance faced criticism due to numerous reports of outages. Yi He, co-founder of the leading CEX, stated that the exchange’s core systems performed reliably.

She acknowledged brief delays in the operation of «some functional modules» and the decoupling of certain product prices. According to her, the exchange compensated users with more than $280 million.

Hyperliquid reported that its blockchain operated smoothly without disruptions or delays despite record traffic.

The company termed this an «important stress test» that demonstrated the reliability and scalability of decentralized finance systems.

Former BitForex CEO Garrett Jin attributed the cryptocurrency market downturn to three factors: the escalation of the U.S.-China trade war, overheated markets, and irresponsible behavior on the part of crypto exchanges.

Jin pointed out that even before the crash, technical indicators, including MACD, indicated overbought conditions for technology stocks and major cryptocurrencies.

The intensification of the trade conflict between the U.S. and China heightened negative sentiment. This prompted investors to withdraw assets from high-risk positions.

Historically, the prices of cryptocurrencies and U.S. technology stocks have been closely intertwined. Therefore, risks from one sector spill into another, which is what occurred prior to the crash, the expert explained.

The market decline was driven not only by macroeconomic factors but also by internal instability. Both equity and cryptocurrency markets were flooded with long positions using high leverage, creating conditions for a crisis akin to the U.S. stock market crash in March 2020.

According to Jin, unlike stocks, most cryptocurrencies lack intrinsic value and are influenced by investor sentiment. Exchanges offering leverage from 5x to 100x on such volatile assets provoke liquidity crises.

The expert recalled that during the panic on October 11, many altcoins’ prices plummeted by 80%. Liquidations affected even traders with minimal leverage of 0.2x to 0.3x. He emphasized that not everyone can monitor the market 24/7 to manually close positions.

Jin believes that the issue lies in exchanges providing high leverage to increase profits while avoiding accountability.

To restore trust and ensure healthy market growth, exchanges should implement stabilization funds, he argued. Similar to the U.S. stock market, they could provide liquidity during crises.

Jin is suggested to be the mysterious whale from Hyperliquid, according to an investigation by on-chain sleuth known as Eye.

The trader opened a perpetual contract to short Bitcoin with 10x leverage on a DEX. The position will be liquidated if the price of the leading cryptocurrency reaches $125,500.

Attention was drawn to the user due to prior trades. He reportedly earned $192 million by opening a short position just 30 minutes before Donald Trump’s tariff announcement, which crashed the market. The community dubbed him an «insider whale.»

Eye provided transaction analysis. The whale’s wallet received funds for fee payments from an address associated with ENS ereignis.eth. This name is also linked to garrettjin.eth, which leads to Jin’s X account.

Jin, the former BitForex CEO, rejected the allegations. Binance founder Changpeng Zhao reshared the investigation. In response, Jin stated that he has no ties to the Trump family and that it was not insider trading.

To recap, on October 13, the price of Bitcoin recovered above $115,000, while Ethereum rose to $4,190.