Hyperliquid Leads $10B Liquidations, Sparks Regulatory Debate
Hyperliquid faced massive criticism after $10 billion worth of positions were wiped out during the recent crash, leading to calls for regulatory scrutiny.
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, deemed the claims "irresponsible", citing the platform's transparency and data sharing as the reason for its high liquidation numbers.
Leaders are advocating for better use of insurance funds to safeguard traders' capital, and the question remains whether derivative exchanges will learn from the crash and protect their users in the future.
Author's summary: Hyperliquid's $10B liquidation sparks regulatory debate.