Hyperliquid Faces Criticism After $10B Liquidations
Hyperliquid has faced massive criticism following its recent $10 billion liquidation, leading to calls for regulators to investigate the exchange.
“Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices.”
Kris Marszalek, CEO of Crypto.com, made this statement in response to the liquidation. However, Jeff Yan, CEO and Co-Founder of Hyperliquid, defended the platform, stating that the claims were "irresponsible" and that Hyperliquid's transparency was the reason for the high liquidation numbers.
- Most positions were forcefully closed to ensure the platform remains debt-free.
- Leaders are calling for better use of insurance funds to safeguard traders' capital.
Author's summary: Hyperliquid under fire after $10B liquidation.