Binance is facing criticism from Hyperliquid CEO Jeff Yan over its handling of liquidation data during a recent market crash. Yan, founder of the transparency-focused platform, alleges that the exchange’s reporting practices are understating actual liquidations, raising concerns about market integrity and user protection in volatile conditions. The October 13th crash, which saw $19 billion wiped off markets, affected an estimated 1.6 million traders. Hyperliquid offers real-time on-chain transparency, allowing users to verify trading outcomes independently, a stark contrast to Binance’s alleged underreporting practices. Yan’s comments have sparked industry discussion about the need for increased transparency in centralized exchanges, particularly during periods of market volatility. Binance has yet to respond to Yan’s criticisms. Meanwhile, the event has highlighted the financial and regulatory implications of such discrepancies. The exchange’s assets like USDe and BnSOL de-pegged following the crash, further exposing vulnerabilities in Binance’s operations. Hyperliquid itself reported over $10.3 billion in liquidations, highlighting the severity of the market downturn. This incident raises critical questions about the future direction of regulation and industry standards regarding on-chain transparency. The crypto industry is witnessing a growing push for this change, potentially leading to more stringent measures from exchanges as they strive to build trust among users.