Hyperliquid Leads $10B Liquidations: Regulatory Scrutiny Needed?
Hyperliquid faced criticism after $10 billion in positions were forcefully closed during a recent crash, sparking calls for regulators to investigate exchanges.
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 massive liquidation. However, Jeff Yan, CEO and Co-Founder of Hyperliquid, defended his platform, stating that its high liquidation numbers were due to transparency and full data sharing.
- Hyperliquid had $10 billion in positions wiped out during the crash.
- Leaders are calling for better use of insurance funds to safeguard traders' capital.
Author's summary: Hyperliquid's $10B liquidation sparks regulatory debate.