Yan: CEXs underreport liquidations

Following the turmoil, Yan showcased Hyperliquid’s performance and criticized centralized exchanges for their lack of transparency. He claimed that platforms like Binance underreport liquidation data by up to 100 times. In a post on X, he emphasized that all liquidations on Hyperliquid are fully on-chain and verifiable in real time:

“Some centralized exchanges openly admit that they massively underreport user liquidations.”

According to Yan, Binance displays only one liquidation per second, even when thousands occur simultaneously. He said this underreporting hides the true scale of events and proves why fully on-chain systems are more transparent and fair.

“Transparency and neutrality are key reasons why fully on-chain DeFi is the ideal foundation for global finance,” Yan wrote.

He added that real-time on-chain reports let users instantly verify liquidations and assess platform solvency, reducing reliance on trust and ensuring fairer markets.

CZ responds: Binance prioritizes user protection

Binance founder Changpeng Zhao (CZ) replied on social media without naming Hyperliquid directly but clearly referring to the dispute:

“Some people ask why #BNB is so strong? While others ignore, hide, or blame competitors, key @BNBChain ecosystem players — Binance, Venus, and others — spent hundreds of millions of their own funds to protect users. Different value systems.”

The exchange between the two comes at a tense time for centralized platforms. During the crash, Binance faced temporary technical issues preventing traders from closing positions, sparking frustration across the community.

Hyperliquid runs smoothly amid record volume

Meanwhile, Hyperliquid processed between $50 billion and $70 billion in trading volume without a single outage. Built on its own Layer-1 blockchain, the DEX continues to grow rapidly. According to DeFiLlama, the platform handled $319 billion in volume in July alone, helping DeFi perpetual markets reach a record $487 billion that month.

CZ later clarified that he had previously worked with Jeff Yan, who participated in Binance Labs’ incubation program in 2018 with a startup called YZiLabs. The project failed, and Binance has had no financial or operational ties with Hyperliquid since.

The debate highlights the growing divide between centralized (CEX) and decentralized (DEX) exchanges. With volatility rising, the crypto industry continues to ask the same question — which matters more: blockchain transparency or centralized control?