Hyperliquid Faces Criticism After $10B Liquidations
Hyperliquid has faced massive criticism following its recent $10 billion liquidation, leading to 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 liquidation. However, Jeff Yan, CEO and Co-Founder of Hyperliquid, defended the exchange, stating that the claims were "irresponsible" and that Hyperliquid's transparency was the reason for the high liquidation numbers.
Leaders are calling for better use of insurance funds to safeguard traders' capital and prevent similar incidents in the future.
Author's summary: Hyperliquid faces criticism after $10B liquidation.