Changpeng Zhao Responds to Criticism, Highlights Binance Efforts to Shield Users

Tensions flared between Binance and decentralized trading platform Hyperliquid following last week’s severe crypto market downturn.

Jeff Yan, Hyperliquid’s co-founder, publicly criticized centralized exchanges for allegedly underreporting user liquidations, arguing that on-chain platforms offer far greater transparency and verifiability of trades.

Yan suggested that during periods of extreme volatility, some centralized exchanges may only report a fraction of the actual liquidation activity, leaving users with an incomplete picture of market risks. He highlighted that on-chain systems allow anyone to track orders and liquidations in real time, emphasizing fairness and accountability.

Binance CEO Changpeng Zhao, widely known as CZ, responded indirectly, stressing the exchange’s focus on protecting users during the turmoil. In a post on X, he claimed that Binance and its associated platforms had absorbed hundreds of millions of dollars from their own resources to safeguard traders, contrasting this approach with others who “ignore, hide, or shift blame.” CZ concluded by pointing to “different value systems,” a statement interpreted as a subtle response to Hyperliquid’s comments.

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The clash followed the October 10 – 11 market crash, which saw Bitcoin fall sharply from $122,000 to $102,000 and triggered one of the largest liquidation cascades in crypto history, affecting more than 1.6 million traders and $19 billion in leveraged positions. While Hyperliquid reportedly processed $50 – $70 billion in trading volume without disruption, Binance faced temporary technical issues that prevented some users from closing positions for nearly an hour, drawing frustration across social media.

CZ also clarified that Binance has no current investment ties with Hyperliquid. While Hyperliquid’s founder participated in Binance Labs’ 2018 incubation program, the startup did not succeed, and Binance did not recover its investment. Since its launch, Hyperliquid has grown rapidly, operating on its own Layer-1 blockchain and emerging as a leading decentralized perpetual trading platform, handling significant volumes in the broader DeFi market.

The exchange of claims underscores the ongoing debate over transparency, user protection, and the advantages of decentralized versus centralized trading infrastructures as crypto markets continue to evolve.