Hyperliquid Leads $10B Liquidations: Calls 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 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, while Jeff Yan, CEO and Co-Founder of Hyperliquid, defended his platform, stating that its transparency and full data sharing led to the high reported liquidation numbers.
- Most positions were forcefully closed to ensure the platform remains debt-free.
- Leaders are calling for better use of insurance funds to safeguard traders’ capital.
Author's summary: Hyperliquid's $10B liquidation sparks regulatory debate.