Hyperliquid Leads $10B Liquidations: Calls for Regulatory Probe
Should regulators look into the exchanges? This question arises after Hyperliquid led $10B liquidations.
Most positions were forcefully closed to ensure the platform remains debt-free, prompting leaders to call for better use of insurance funds to safeguard traders' capital.
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 Hyperliquid's massive criticism following its massive liquidation during the recent crash.
However, Jeff Yan, CEO and Co-Founder of Hyperliquid, countered that the claims were "irresponsible" and that DEX's liquidation was the highest because it was the most transparent and shared full data.
In contrast, most CEXs only allow CoinGlass to sample a limited amount of liquidation data.
Author's summary: Hyperliquid faces criticism after $10B liquidations.