Hyperliquid founder says exchange liquidation data may be understated by over 100x

Jeff, the founder of Hyperliquid (HYPE), has argued that some exchanges provide data that drastically underreports the scale of user forced liquidations. He stated that while Hyperliquid allows for all data to be transparently verified on-chain in real time, exchanges such as Binance reflect only one liquidation per second in their data feeds, even if thousands of liquidation orders are executed simultaneously. Because market liquidations can occur in sudden, explosive bursts, the actual volume of forced liquidations could be understated by a factor of 100 or more, he added. His comments echo suspicions previously raised in some cryptocurrency communities, which noted that CoinGlass's liquidation data for Binance appears to be capped at one event per second.