Hyperliquid fights Binance after the record liquidation of 19 billion dollars
Hyperliquid, a DeFi platform, suffered a record liquidation of 1.23 billion dollars, with the liquidation of 6,300 wallets alone being wiped out
In a chaotic context, tensions escalate between the giants of DeFi and CeFi. Hyperliquid co-founder, Jeff, accused Binance of reporting lower liquidations than the reality, citing the behavior of aggregating their recorded orders - potentially reducing trading volume by 100 times during spikes - to highlight the on-chain transparency of DeFi compared to the lack of transparency in CeFi
Binance founder, CZ, hit back by emphasizing user protection, revealing that the exchange and its partners had voluntarily paid out 283 million dollars in compensation during the downtime
This conflict highlights the core divide in the ecosystem: innovation and transparency in DeFi versus risk minimization in CeFi. Conspiracy theories spread about X, accusing coordinated attacks, but regulators are currently investigating exchanges for the potential manipulation and abuse of leverage
As the market rebounds, this incident exposes vulnerabilities in high-leverage trading, fueling calls for tighter oversight
Which side will you choose in this battle?
