Recent concerns have surfaced regarding the accuracy of liquidation data reported by major centralized cryptocurrency exchanges, including industry leader Binance. According to Jeff Yan, CEO of Hyperliquid, and independent data analytics platform CoinGlass, current reporting methodologies may significantly underrepresent actual liquidation volumes during periods of market volatility.
The discrepancy appears to stem from how exchanges calculate and report liquidations, potentially masking the true scale of forced position closures that occur during sharp price movements. This reporting gap could obscure market conditions and risk exposure for traders relying on these metrics for decision-making.
Industry observers note that transparent liquidation data is crucial for assessing market health and trader leverage levels. The alleged undercounting raises questions about risk management practices and the completeness of market information available to participants. As regulatory scrutiny of cryptocurrency markets intensifies globally, accurate reporting of such critical metrics becomes increasingly important for maintaining market integrity and investor confidence.
Market participants are calling for standardized reporting protocols across exchanges to ensure consistent and transparent liquidation data. Such measures would provide traders with more reliable information for risk assessment and contribute to overall market stability during periods of heightened volatility.
