published Gracie ChenCEO of the platform Bitgetpublished on the X platform on April 7, in which I described the platform Hyperliquid He described the platform as “immature, unethical and unprofessional” and described the platform as a fake decentralized exchange (DEX) that is over-promoted, posing risks similar to… “FTX 2.0” On users. The post hit Twitter’s crypto community like a bombshell, sparking one of the most intense debates between centralized (CEX) and decentralized (DEX) exchanges that the industry has seen in years.
This attack is not just a passing noise; It was Hyperliquid It attracts huge trading volumes, with its daily transactions in perpetual futures regularly exceeding $1 billion, eroding the share of mid- and upper-tier centralized trading platforms including Bitget.
- Charge: Gracie Chen, President of Bitget, publicly described Hyperliquid as a fake and overmarketed DEX, warning of FTX-like systemic risks and describing it as an “offshore CEX without KYC/AML.”
- the reason: A small group of Hyperliquide listeners unanimously delisted the meme coin futures market JELLY On March 26, positions were force-settled at $0.0095 after an attacker exploited a short position worth $6 million to compromise the HLP vault, exposing the central platform’s ability to intervene in emergency situations.
- Structural cash flow: Chen argued that Hyperliquid’s hybrid vaults expose all users to collective risks from individual manipulators and that the institution’s intervention in open markets sets a “dangerous precedent.”
- Trading volume context: It represents the growth of the Hyperliquide platform and its currency THRESHING A direct threat to futures revenue on centralized exchanges, making Chen’s criticism range from principled concern to competitive interests.
- Industry Segmentation: Repeat Arthur Hayesco-founder of BitMEX, raised concerns about decentralization but downplayed long-term damage; While the Hyperliquide community responded vigorously, accusing Chen of mixing valid criticism with attempts to protect centralized platforms.
- What’s next: Hyperliquid announced plans to expand its validator pool and update the HLP vault following the JELLY incident; Bitget’s Q2 2026 trading figures will reveal whether this controversy has affected market share.
What Chen actually said and why Hyperliquid got angry
Chen’s message was simple: it works Hyperliquid Like the “offshore CEX platform without KYC/AML” disguised as decentralized finance (DeFi), and the JELLY I proved it. His main accusation that the decision to close the JELLY Market and forcibly settle positions “sets a dangerous precedent” was aimed at the precise mechanism Hyperliquid uses to differentiate itself from traditional finance, namely on-chain execution and unlimited custody of assets with auditor consensus.
The JELLY incident, which occurred on March 26, gave additional force to Chen’s criticism. An attacker opened a $6 million short position in the new JELLY contract – a meme coin launched in January 2025 by Ikram Majdon Ismail, co-founder of Venmo – then increased the price of the on-chain token to trigger self-liquidation, threatening losses of more than $10 million for HLP’s vault.
The hyperliquid auditors responded unanimously by delisting the market and forcing a settlement at $0.0095, which protected the vault but eliminated users’ open positions in the process.
This intervention is the living proof that Chen relied on. Hyperliquide has built its brand and the value of its currency THRESHING On the demand for decentralization. Forced settlement of user positions through coordinated action among validators has nothing to do with decentralization, Chen said loudly, putting FTX’s name in the headlines.
Why are you attacking Bitget so hard? And what does Hyperliquide have to lose?
The real story isn’t just a disagreement between leaders, it’s a question of trading volume. verification Hyperliquid Futures contracts, the commodity category on which centralized trading platforms such as… Bitget in royalty income.
As the dynamics of centralized exchanges evolve and traders become more comfortable with on-chain execution, every dollar transferred to Hyperliquide is a dollar that does not pass through the order book of centralized exchanges.
Chen’s timing was precise; His post came about two weeks after the JELLY incident, allowing him to highlight a tangible structural failure. This is not a coincidence, but rather the competitive calculus of a female CEO who observes the migration of market share to the chain, and seizes the moment when the narrative of this migration cracks.
And it was pompousfounder of AP Collective, previously publicly detailed the tactic of self-liquidating a $6 million short position; Chen, in turn, amplified the structural criticisms to a broader audience while framing the risks at a level comparable to the FTX collapse.
currency THRESHING She is also part of this struggle. Hyperliquid’s native currency has become a bet on the continued growth of the platform’s trading volume and its place in DeFi infrastructure. Attacking the credibility of platform decentralization is a direct attack on the thesis behind HYPE Valuation, which all coin holders in the community are aware of.
Is Hyperliquide really decentralized?
That works Hyperliquid On a dedicated Layer 1 (L1) network using HyperBFT consensus, with on-chain order matching and a non-custodial settlement model via the HyperLiquidity Provider vault.
In theory, this is fundamentally different from centralized platforms; There is no risk of withdrawal or mysterious internal correspondence. But the group of auditors is small, subject to authorization, and managed by a select group, and the Hyper Foundation retains the ability to intervene in emergency situations, which it did in the JELLY case without a community governance vote.
He declared Arthur Hayesco-founder of BitMEXsaid the community should “stop pretending that Hyperliquid is decentralized”, echoing Chen’s argument but from a less commercial conflict of interest position. Although Hayes later walked back his comments, believing that initial reactions had exaggerated the reputational damage and calling for a focus on the resilience of the platform, the structural issue did not disappear with his reassessment.
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