- Crypto traders lost a collective $600 billion within 30 minutes after Donald Trump threatened to renew a tariff war with China.
- The total market cap of digital assets fell from over $3.9 trillion to under $3.3 trillion after Trump’s remarks.
- Hyperliquid and Binance engaged in a public dispute about liquidation reporting and user reimbursements during the crash.
- Binance reported higher user reimbursements and a lower long liquidation rate compared to Hyperliquid.
- Binance founder Changpeng Zhao emphasized his greater financial resources and highlighted his platform’s recovery versus Hyperliquid.
A sudden drop in cryptocurrency prices occurred Friday afternoon after Donald Trump threatened to restart a tariff war with China. During a 30-minute period, crypto traders lost an estimated $600 billion as markets reacted to the news.
The combined market capitalization of all crypto assets decreased sharply, dropping from over $3.9 trillion to under $3.3 trillion. Stablecoins lost their pegs, and prominent coins like Cosmos experienced drastic flash crashes—some losing up to 99.9% of their value on Binance.
As the volatility unfolded, a dispute broke out online between Hyperliquid co-founder Jeffrey Yan and Binance founder Changpeng Zhao. They disagreed over reporting systems for liquidations, methods to prevent market manipulation, and which exchange had better financial resilience. Yan accused centralized platforms like Binance of bundling large numbers of liquidations into single reports, claiming this practice understated the true impact. In response, Zhao defended Binance’s system, stating it had been transparent and operational for over eight years.
Zhao shared that Binance reimbursed $283 million to customers affected by the sell-off, while claiming that Hyperliquid’s vault profited $40 million during the crash. He also highlighted user claims that Hyperliquid liquidated 90% of its long positions, while Binance’s long liquidation rate stood at 60%. Zhao further noted a $600 million investment from China Renaissance Bank to his family office, and a $45 million rebate to BNB memecoin investors.
Both platforms offer similar financial products known as perpetual futures contracts, or “perps,” which let users trade with leverage. Hyperliquid also provides copy-trading and leaderboard contests, with an easier sign-up process. As Hyperliquid promoted itself as a decentralized exchange, Zhao announced a comparable service called Aster, built on the blockchain he co-founded, BNB Chain.
Additionally, Zhao stressed the recovery of Binance’s BNB token, which regained much of its value after the price drop and was within 7% of its all-time high at the time of reporting. In contrast, Hyperliquid’s token HYPE remained about 30% below its peak.
Social media users also debated whether certain investors benefitted from the crash via Hyperliquid. Zhao boosted claims that a Bitcoin investor with more than 100,000 BTC may have profited using the platform, raising concerns about the potential for manipulative trading.
For more details or original statements, readers can visit Trump’s Truth Social post and related discussions on X, among other linked sources.
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