Hyperliquid Denies Solvency, Transparency Allegations Amidst Criticism

Hyperliquid rebutted allegations regarding its solvency and transparency, labeling the claims as false, following a December 22 article questioning its integrity and operational procedures.

The dispute highlights ongoing debates about transparency and decentralization in cryptocurrency platforms, impacting market trust and user confidence amid volatile trading conditions.

Transparency and Decentralization: Hyperliquid’s Resilient System

Hyperliquid has faced allegations questioning its solvency and transparency, which it refutes as baseless. The company maintains that every dollar is traceable and highlights its commitment to decentralization and transparency via BFT Proof-of-Stake nodes.

The allegations primarily focused on security issues and a lack of clarity in its operations. Hyperliquid underscores its robust system with real-time transaction visibility, distinguishing itself from central exchanges.

Jeff Yan, Founder of Hyperliquid, dismissed Tarun Chitra’s claims, stating, “spread[ing] lies masked by fancy ML terms to sound smart” – (Source: 1).

Jeff Yan, Hyperliquid’s Founder, confronted claims that the firm’s practices led to significant losses, defending the entity’s transparency. Yan critiqued Gauntlet CEO Tarun Chitra. Further insights can be found in the following Twitter discussion.

Market Data Overview

Did you know? In previous market crashes, Hyperliquid has handled high-volume liquidations without bad debt, demonstrating its resilient system architecture and operational transparency.

As of December 22, 2025, according to CoinMarketCap, Popcat (POPCAT) is priced at $0.08 with a market capitalization of $80.37 million. It experienced significant market fluctuations, marked by a 16.31% decline over the past week and a 44.34% drop in the last 60 days.

Coincu’s research team suggests that ongoing transparency challenges in trading platforms like Hyperliquid can influence future regulatory measures. Emphasizing consistent real-time data access could be crucial in maintaining market confidence. For a critical view on these market predictions, refer to @chameleon_jeff’s opinion.