The crypto world is buzzing after a mysterious whale drained $5 million from Hyperliquid’s liquidity pool, sparking chaos and accusations.
The finger pointed squarely at Chapeng Zhao, better known as CZ, founder and former CEO of Binance.
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But the billionaire denies any connection to the wallet behind the attack, insisting he’s been off the centralized exchange grid for eight years.
Conspiracy theories
Hyperliquid’s drama started when a whale stirred the pot, not with random liquidation, but seemingly with a targeted stress test or outright attack designed to shake Hyperliquid’s liquidity system.
He denies everything. lol. Look no further than his last week's interview. He denied no business dealing with WLFI even after a clear business deal in place with WFLI on USD1. Denying the truth is no big deal for this dude.
— TZ (@techzealx) November 12, 2025
The community, never short on drama, immediately zeroed in on CZ, but he responded with a classic internet clapback.
“Glad to know I live rent free in your head […] but I have not used any other CEX for 8 years.”
But CZ’s denial hasn’t quelled the conspiracy theories. Some insist he could have handed the reins to an accomplice.
One pointed out a previous interview where CZ denied no business dealings with WLFI despite evidence of a partnership. Denying the truth is no big deal for this dude, they quipped.
Market share
Last month, the exchange faced $10 billion in liquidations during a selloff, though still trailing Binance’s gargantuan volume.
Hyperliquid’s liquidity woes stretched liquidation periods and exposed fragile order books designed for fast perpetual trading on its Layer 1 chain.
Binance continues to dominate spot volumes, leaving Hyperliquid’s market share below 10%, despite steady growth.
Clash of the titans?
As indutry observers highlighted, CZ is gearing up for a high-profile debate with gold bug economist Peter Schiff.
Set for December 4 during Binance Blockchain Week in Dubai, the clash promises a no-holds-barred showdown between Bitcoin’s digital might and tokenized gold’s traditional sheen.
It all started on X when CZ mocked Schiff’s tokenized gold idea as a “trust me bro” scheme reliant on third parties.
Schiff fired back, challenging CZ to a verbal joust, which CZ eagerly accepted. Prepare the popcorn, guys!
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
