$19B Crypto Liquidation Exposes CEX Transparency Gap
The crypto market suffered its largest-ever liquidation event last Friday, erasing over $19 billion in leveraged positions. It liquidated over 1.6 million traders in a single day.
The collapse sparked debate over transparency between centralized exchanges (CEXs) and decentralized finance (DeFi) systems.
Jeff, co-founder of the on-chain exchange Hyperliquid, argued that real transparency—where anyone can check transactions on-chain—explains why DeFi offers fairness and open auditing that CEXs lack.
“Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations,” wrote Jeff. “Every order, trade, and liquidation happens onchain. Anyone can verify the…
