Hyperliquid Leads $10B Liquidations: Regulatory Intervention Needed?
Hyperliquid faced massive criticism after $10 billion worth of positions were wiped out during the recent crash, sparking calls for regulatory intervention.
Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices.
Kris Marszalek, CEO of Crypto.com, suggested a probe into Hyperliquid and other top platforms, while Jeff Yan, CEO and Co-Founder of Hyperliquid, defended the platform's transparency.
- Most positions were forcefully closed to ensure the platform remains debt-free.
- Leaders called for better use of insurance funds to safeguard traders' capital.
Author's summary: Hyperliquid's $10B liquidation sparks regulatory debate.