Hyperliquid co-founder Jeff Yan has claimed that some centralized exchanges may be significantly underreporting their liquidation data during volatile trading periods.
In a post on X, Yan pointed out that certain exchanges, including Binance, only log one liquidation order per second — even when thousands may occur in that brief window. He warned that this could result in actual liquidation figures being undercounted by as much as 100 times.
Yan cited Binance’s public documentation as evidence, emphasizing that the practice could distort traders’ understanding of market stability and risk during major price swings.
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Record $19 Billion Liquidation Follows Bitcoin’s Sharp Rebound
Yan’s remarks came after an unprecedented wave of crypto liquidations on Friday driven by intense market volatility. Bitcoin has since rebounded, rising 3.3% in the past 24 hours to $115,353 as of 4:15 a.m. ET on Monday, after briefly dropping below $105,000, according to data from The Block.
More than 1.6 million crypto traders saw their positions wiped out on Friday, with total liquidations reaching $19.1 billion, figures from Coinglass show.
