土澳大狮兄BroLeon | 🔶BNB ||3月 12, 2025 10:05
Before, I remember some people in the community complained about how the counterfeit contracts in CEX did not allow for high multiples and large positions, and sometimes even voluntarily liquidated your profit positions to prevent overstocking.
To make a contract, it is necessary to have a counterparty position. If you have a large amount of funds and a large position, and you make too much profit on the books due to insufficient liquidity, it may lead to a situation where the counterparty position is not enough to compensate. So a few years ago, it was common to see Binance contract players saying that they were playing with negative assets, and that was running out of positions.
Mature CEX exchanges have mechanisms to prevent contract overstocking, especially off chain Binance. After several PR issues, I remember setting up a 100 million margin for overstocking a few years ago. If overstocking occurs due to severe market fluctuations, Binance will pay to cover it.
I remember there are also regulations in some other CEX that prohibit immediate withdrawal of profits. After all, if the money you earn is liquidated, some of it is owed by the counterparty (negative assets). If someone else loses their account and does not lose money, it is equivalent to the platform losing money.
@HyperliquidX was caught in this loophole this time, giving it a huge order space and earning money that can be immediately withdrawn. Therefore, HLP's Holders will have to lose money for the clearance.
However, CEX has also come this way, and fixing vulnerabilities is not difficult. It's just that I didn't expect such a professional hyperliquid to still have this bug. Chain based Binance has a long way to go...
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