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printed Gracie ChenCEO of the platform Bitgetpublished on the X platform on April 7, in which I explained the platform Hyperliquid It described the platform as “immature, inefficient, and ineffective,” and described the platform as a fake exchange (DEX) that is over-promoted, posing risks similar to … “FTX 2.0” For users. The post came as a bombshell on the crypto Twitter community, sparking one of the most heated debates between centralized (CEX) and decentralized (DEX) exchanges the industry has seen in years.
This attack is not just about noise; It was Hyperliquid It attracts large businesses, and its daily sales in the future are always more than $1 billion, and consumes the segment of medium and high-end businesses, including Bitget.
Key requirements:
- Accusation: Gracie Chen, the president of Bitget, publicly described Hyperliquid as a fake DEX and high-selling, warning of the dangers of FTX and describing it as an “offshore CEX without KYC / AML.”
- the reason: A small group of Hyperliquid researchers joined together to clear the meme coin futures market JELLY On March 26, positions were forcibly set at $0.0095 after the attacker used a small $6 million position to compromise HLP’s blockchain, revealing the central platform’s ability to intervene in an emergency.
- Investments: Chen also said that Hyperliquid’s hybrid hedges put all users at risk from fraudsters, and that the agency’s intervention in open markets represents a “dangerous start.”
- Sales volume: It represents the growth of the Hyperliquid platform and its revenue HYPE A direct threat to the financial future of the central exchange, causing Chen’s opposition to move from sentiment to competition.
- Industry Sector: Repeat Arthur HayesThe co-founder of BitMEX, expressed concern about globalization but downplayed the long-term damage; Although the Hyperliquid team responded strongly, they accuse Chen of mixing up legitimate opposition and trying to protect centralized platforms.
- Next: Hyperliquid announced plans to expand its approval pool and switch to the HLP chamber following the JELLY incident; Bitget’s sales numbers in the second quarter of 2026 will reveal whether the controversy has affected the market share.
What Chen actually said and why Hyperliquid was angry
Chen’s post was straightforward: It works Hyperliquid As a “no KYC/AML offshore CEX platform” disguised as a decentralized currency (DeFi), it is JELLY I confirmed it. His main case that the decision to close the JELLY market and establish a strong position “sets a dangerous example” looks at the precise method that Hyperliquid uses to separate itself from traditional funds, which is doing on the chain and keeping the wealth without limits and the agreement of the auditor.
The JELLY incident on March 26 gave Chen’s protest a boost. The attacker opened a short position of $ 6 million on the new JELLY contract – a meme currency launched in January 2025 by Ikram Majdon Ismail, the co-founder of Venmo – and then raised the value of the token to trigger suicide, threatening a loss of more than $ 10 million to the HLP reserve.
Hyperliquid analysts responded in unison by clearing the market and forcing a settlement at $0.0095, which protected the room but eliminated the open positions of users.
This intervention is the living proof that Chen relied on. Hyperliquid has created its own brand and value for money HYPE On the claims of decentralization. Enforcing the stability of user roles through a consensus process between authorized parties is not related to internationalization, Chen loudly, putting the FTX name on the headlines.
Why are you attacking Bitget so hard? And what does Hyperliquid have to lose?
The real issue isn’t just about disagreements between managers, it’s about sales volume. to confirm Hyperliquid More than $1 billion in daily trading is in futures contracts, the largest group of products that central trading platforms such as… Bitget in the payment of wages.
When the medium of execution changes and traders become free and on the chain of execution, every dollar that goes to Hyperliquid is a dollar that does not pass through the middle of the execution system.
Chen’s timing was right; His script came two weeks after the JELLY incident, which caused him to miss the show. This is not a coincidence, but a competitive calculation of a female CEO who looks at the market’s move to the chain, and takes the moment when the news of this move breaks.
And that was it arrogantthe founder of AP Collective, previously publicly explained the process of withdrawing himself $ 6 million; While Chen expanded the group’s opposition to a wider audience while preparing for a disaster on a scale similar to the collapse of FTX.
money HYPE He is also part of this war. The Hyperliquid brand has been betting on the growth of the trading platform and its place in the DeFi infrastructure. The attack on the credibility of the distribution platform is a direct attack on the concept of HYPE Valuation, which every investor in the area knows.
Is Hyperliquid really distributed?
It’s working Hyperliquid On a dedicated Layer 1 (L1) network using the HyperBFT contract, parallel to chains and a decentralized version via the HyperLiquidity Provider vault.
In theory, this is very different from the central platforms; There are no threats of deletion or similar internal privacy threats. But the group of readers is small, controlled by permission, and controlled by a narrow group, and the Hyper Foundation retains the power to intervene in emergencies, which it did in the case of JELLY without a controlling vote from the community.
He announced Arthur Hayesco-founder of BitMEXhe said that the community should “stop pretending that Hyperliquid is decentralized,” echoing Chen’s argument but from a non-commercial perspective. Although Hayes later retracted his comments, saying that his initial actions were too much to damage the reputation and urge to look at the strength of the platform, the question of stability did not disappear with his review.
A note Bitget CEO attacks Hyperliquid: fake and dangerous platforms like FTX appeared for the first time Cryptonews Arabic.
