Hyperliquid Leads $10B Liquidations: Call for Regulatory Probe
Hyperliquid faced massive criticism after $10 billion worth of positions were wiped out during the recent crash, prompting calls for regulators to investigate the exchange.
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 incident. However, Jeff Yan, CEO and Co-Founder of Hyperliquid, defended the platform, stating that the high liquidation numbers were due to its transparency and willingness to share full data.
- Most positions were forcefully closed to keep the platform debt-free.
- Leaders are calling for better use of insurance funds to safeguard traders' capital.
Author's summary: Hyperliquid's $10B liquidation sparks regulatory probe calls.