Hyperliquid Leads $10B Liquidations: Regulatory Scrutiny Needed?
Hyperliquid faced massive criticism after $10 billion worth of positions were wiped out during the recent crash, prompting calls for regulatory investigation.
Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices.
According to Kris Marszalek, CEO of Crypto.com, a probe into Hyperliquid and other top platforms is necessary. However, Jeff Yan, CEO and Co-Founder of Hyperliquid, deemed the claims "irresponsible", citing the platform's transparency and full data sharing as the reason for its high 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.