Centralized exchanges face claims of massive liquidation undercounts

**Centralized Cryptocurrency Exchanges Accused of Massive Liquidation Undercounts**

Major centralized exchanges including Binance are facing serious allegations of significantly undercounting liquidation data, according to warnings from Hyperliquid CEO Jeff Yan and prominent cryptocurrency data platform CoinGlass. This revelation raises critical questions about transparency and accuracy in the digital asset trading ecosystem.

The liquidation reporting controversy highlights fundamental differences between centralized finance (CeFi) and decentralized finance (DeFi) platforms in the cryptocurrency market. Accurate liquidation data is crucial for Bitcoin traders, altcoin investors, and institutional participants who rely on this information for risk management and market analysis.

CoinGlass, a leading blockchain analytics platform, suggests that current reporting methodologies employed by centralized exchanges may present an incomplete picture of actual forced liquidations occurring across cryptocurrency markets. This undercounting could impact trading strategies, market sentiment analysis, and overall transparency in the digital asset space.

The allegations come amid growing scrutiny of centralized exchange practices and increased adoption of decentralized alternatives. Traders and investors should exercise caution when interpreting liquidation data from traditional cryptocurrency exchanges, as these figures may not reflect true market conditions affecting Bitcoin, Ethereum, and other major cryptocurrencies.