Centralized exchanges face claims of massive liquidation undercounts

Hyperliquid CEO Jeff Yan and data platform CoinGlass warned that the liquidation reporting method used by centralized exchanges, such as Binance, may undercount actual liquidations.

Hyperliquid co-founder and CEO Jeff Yan claimed that the way centralized crypto exchanges, and Binance specifically, report liquidation data likely underrepresents the true scale of losses during major market sell-offs.

Bitcoin (BTC) fell to $102,000 on Friday after US President Donald Trump announced sweeping tariffs on China. Ether (ETH) also dropped to $3,500, while Solana (SOL) slipped below $140 amid a marketwide sell-off.

According to data from CoinGlass, $16.7 billion worth of long positions and $2.46 billion in short positions were liquidated on Friday, marking the largest liquidation event in crypto history.