Hyperliquid co-founder and CEO Jeff Yan said that reports from major centralized crypto exchanges, including Binance, may misrepresent the true scale of liquidations. He explained that Binance’s liquidation order feed has a built-in technical limit that restricts how many events can be recorded.
In a post published on October 13, Yan referred to Binance’s documentation, which notes that the liquidation order stream includes only the most recent liquidation occurring within each one-second interval.
Binance’s documentation states that the liquidation update stream provides real-time data on forced position closures. While this structure improves performance, Yan pointed out that recording just the last event per second means many liquidations go unreported – especially when hundreds of positions are closed simultaneously.
“Since liquidations occur in batches, under certain conditions the actual volumes could easily be underestimated by a factor of 100,” he wrote.
Analytics platform CoinGlass previously made a similar observation. In a post on Saturday, the team said the real liquidation volume was likely much higher, as Binance publishes only one liquidation order per second.
The sharp decline began on October 11 after U.S. President Donald Trump announced large-scale tariffs on Chinese goods. Bitcoin on Binance dropped to $101,516, while Ethereum fell to $3,000. Within 24 hours, total liquidations reached about $19.134 billion, including $16.679 billion in long positions – the largest liquidation event in crypto market history.
Yan’s comments came amid significant losses among users of his own platform. According to Lookonchain, more than 1,000 Hyperliquid (HYPE) wallets were completely wiped out during Friday’s crash, while losses across over 6,300 addresses exceeded $1.23 billion.
Yan stressed that such incidents highlight the importance of accurately reporting liquidation data during periods of high volatility to avoid distorting the true state of the market.
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