Bitcoin News Today: Bitcoin's $109k Test: Liquidation Risks and CEX Transparency Feud

Bitcoin faces a critical price threshold as market data indicates a potential surge in liquidation pressure should the asset dip below $109,000. According to Coinglass, a drop beneath this level would trigger cumulative long liquidation pressure of $690 million on major centralized exchanges (CEXs), highlighting the fragility of leveraged positions in the current market environment . This figure contrasts with recent liquidation events, where a market rout in late October 2025 wiped out $19 billion in leveraged positions across 1.6 million traders, as Bitcoin fell from $122,000 to $109,000 Hyperliquid Co-Founder Flags Transparency Issues at CEXs^[1].

The debate over transparency in liquidation reporting has intensified, with Hyperliquid co-founder Jeff Yan accusing CEXs like Binance of underreporting liquidation activity. Yan argued that on-chain systems, such as Hyperliquid's fully on-chain model, allow real-time verification of trades and liquidations, unlike centralized platforms where liquidation snapshots may only reflect one order per second Hyperliquid Co-Founder Flags Transparency Issues at CEXs^[1]. This discrepancy could lead to "100x underreporting" during high-velocity liquidation events, according to Yan. Binance's Changpeng Zhao (CZ) defended the exchange, stating that BNB Chain ecosystem players prioritized user protection during the October crash by investing hundreds of millions to mitigate losses Hyperliquid Co-Founder Flags Transparency Issues at CEXs^[1].

Market volatility has underscored structural weaknesses in crypto derivatives trading. During the October 10–11 crash, Binance faced temporary technical issues that delayed position closures for some traders, while Hyperliquid maintained uninterrupted operations despite handling $50–$70 billion in trading volume Hyperliquid Co-Founder Flags Transparency Issues at CEXs^[1]. Liquidation data further revealed stark differences: Binance liquidated 60% of long positions, whereas decentralized platforms like Hyperliquid reported closer to 90% Changpeng Zhao Hits Back at Hyperliquid Founder Flagging Transparency Issues at CEXs^[2]. Coinglass data also showed $33.43 million in total liquidations across major exchanges, with Binance leading at $15.25 million Hyperliquid Founder Criticizes CEX for Inflated Liquidations^[3].

The liquidation risk at $109,000 is compounded by on-chain signals suggesting a potential bearish shift. Bitcoin's taker buy/sell ratio, a key sentiment indicator, fell to -0.79, indicating dominant selling pressure . Analysts note that the Fed's recent rate cut failed to catalyze a sustained rally, with Bitcoin's SOPR and Sharpe ratio metrics pointing to waning profitability and reduced institutional appeal .

As the market navigates these challenges, the debate over transparency and risk management remains central. Hyperliquid's fully on-chain approach has positioned it as a benchmark for accountability, while CEXs face scrutiny over their reporting practices. The coming weeks will test whether macroeconomic stability and improved risk controls can stabilize the market or if renewed volatility will reignite liquidation cascades.