After its suspicious move: The "Hyperliquid" platform could be "FTX 2.0"
“Gracy Chen,” the CEO of the “Bitget” platform, criticized “Hyperliquid”'s response to an incident recently experienced on its platform, warning that its actions could lead it to repeat the fate of FTX.
This came after “Hyperliquid” announced the delisting of JellyJelly (JELLY) perpetual contracts due to suspicious market activity, as clarified in its statement, with a commitment to compensate affected users.
However, the decision raised questions about the degree of decentralization of the platform, given that it was made by a small group of validators.
Concerns about decentralization and structural risks:
“Chen” expressed her concern that “Hyperliquid,” despite presenting itself as a decentralized trading platform, actually operates like a centralized platform (CEX) without Know Your Customer (KYC) or Anti-Money Laundering (AML) measures, which facilitates illicit flows.
These concerns were shared by prominent figures in the sector, including “Arthur Hayes,” co-founder of “BitMEX,” who called for an end to pretending that Hyperliquid is a decentralized platform.
“Chen” also described “Hyperliquid”'s actions as unprofessional and unethical, considering that its decisions have caused losses for users and harmed the platform's credibility.
She also pointed to deeper structural risks, as “Hyperliquid”'s use of mixed vaults makes users susceptible to collective losses,
