Vetle Lunde, a senior analyst at K33 Research, has issued a stark warning regarding the practices of prominent crypto exchanges concerning the authenticity of liquidation data. In a post on X, Lunde outlines how exchanges such as Binance, Bybit, and OKX have systematically modified their data reporting processes in a way that he claims significantly distorts the true scale of market liquidations. Why Crypto Liquidation Data Is Bogus The core of Lunde’s argument revolves around changes implemented by these exchanges around mid-2021. For example, both Binance and Bybit adjusted their liquidation WebSocket API to report only one liquidation per second, ostensibly to “provide a ‘fair trading environment’” and “optimize user data stream,” respectively. Similarly, OKX has implemented a cap, restricting the reporting to one order per second per contract. Lunde explains that this modification in the data stream profoundly impacts the market’s transparency, leading to a scenario where liquidation data, a critical metric used to assess market health and trader behavior, is “wildly underreported.” According to Lunde, this has been the case for the past three years ..
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