Hyperliquid CEO Jeff Yan and the CoinGlass platform believe major exchanges like Binance may be undercounting crypto liquidations.
The Biggest Crypto Liquidation Event
Last Friday, the crypto market experienced one of its most significant crashes to date. Bitcoin (BTC) plunged from $111,797 to $102,000 after U.S. President Donald Trump announced new tariffs on China. Ether (ETH) fell to $3,500, and Solana (SOL) went below $140.
The largest liquidation event in crypto history.
In the past 24 hours, 1,618,240 traders were liquidated, with a total liquidation amount of $19.13 billion.
The actual total is likely much higher — #Binance only reports one liquidation order per second.… pic.twitter.com/tvMCILVgU0
— CoinGlass (@coinglass_com) October 10, 2025
CoinGlass reported that traders experienced the highest-ever amount of crypto liquidations, totaling $19.1 billion. But according to Yan, these numbers are much higher. Yan, in a post on X, referred to Binance’s documentation, stating that it only counts the latest liquidation within a one-second interval. During times of extreme market chaos, hundreds of liquidations can occur per second, likely leaving many out.
“Liquidations come in bursts, causing up to 100x underreporting,” Yan said. CoinGlass agreed, stating that Binance’s system likely misses a significant portion of the actual liquidation data.
Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations
Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their… pic.twitter.com/K5sv74LJgO
— jeff.hl (@chameleon_jeff) October 13, 2025
Centralized Platforms Struggle Under Pressure
Binance faced harsh criticism after the flash crash. During the liquidation of their positions, many traders reported frozen buttons and failed stop orders. Later, Binance blamed the display problem on a temporary fault. They said some trading pairs showed a zero price because of decimal changes.
CEO Yi He insisted that Binance maintain a stable central system. However, she admitted some features lagged, and a few products briefly lost their pegs. They later paid out more than $280 million to affected users.
Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this. If you have incurred losses attributable to Binance, please contact our customer service to… https://t.co/9Q7GZuFY5H
— Yi He (@heyibinance) October 11, 2025
DeFi Shows Strength During the Chaos
Centralized exchanges were failing, but the decentralized finance (DeFi) platforms were still holding up. USDe retained its peg on Curve after falling on Binance and Bybit. Hyperliquid’s team reported zero downtime, claiming this proved that decentralized systems can handle extreme volatility.
TL;DR: USDe did not depeg, Binance did.
USDe had a price drop to around $0.65 on Binance during the market crash on October 10. People called it a depeg. It wasn’t.
> Binance’s order book oracle used its own spot prices instead of pulling from global LPs
> When deposits &… https://t.co/Yp4aLUyzES— YashasEdu (@YashasEdu) October 13, 2025
Conclusion
The recent crash can imply that crypto liquidations might be much greater than the reported ones at centralized exchanges. As traders seek transparency, DeFi platforms may earn more trust. Now, more than ever, traders must understand how to track crypto liquidations.