Hyperliquid founder Jeff has raised serious concerns over transparency in centralized exchanges (CEXs), alleging that some platforms underreport liquidation data by up to 100 times. In a post shared on X, Jeff contrasted Hyperliquid’s fully on-chain liquidation system, which allows anyone to verify trades, liquidations, and solvency in real time, with the opaque practices of major exchanges.
According to Jeff, Hyperliquid’s on-chain architecture ensures that every order, trade, and liquidation is executed and recorded publicly, providing full neutrality and auditability. “Transparency and neutrality are key reasons that fully on-chain DeFi is the ideal infrastructure for global finance,” he said.
Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations
Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
In contrast, Jeff claimed that many centralized exchanges, including Binance, only display a fraction of their liquidation events. “Even if there are thousands of liquidations in a single second, only one is reported,” he explained, noting that this can result in up to 100x underreporting during volatile market conditions.
The comments come after a turbulent week in crypto markets, where billions in leveraged positions were wiped out during a sudden selloff. The incident has reignited debate over the transparency gap between decentralized and centralized trading venues.
Jeff concluded that the industry must embrace verifiable on-chain data as a core standard for the next generation of financial systems, urging exchanges to prioritize transparency over convenience.
