- Every user dollar on Hyperliquid is traceable onchain, proving full solvency and transparency.
- Testnet tools or “godmode” features cannot affect real user funds or trades.
- Hyperliquid’s 24 validators and open-source design make it more decentralized than competitors.
Hyperliquid has come under scrutiny after recent claims questioned its solvency and operational integrity. The decentralized perpetual trading platform responded with a detailed explanation, asserting full transparency and robust onchain verification.
According to Hyperliquid, every dollar in the system is accounted for, and the integration of native HyperEVM USDC complements the Arbitrum bridge balances. The combined total currently reaches 4.351 billion USDC on HyperCore, with an additional 59 million USDC on HyperEVM. This confirms that user funds remain fully backed and traceable onchain.
Vladimir Novakovski, a noted blockchain analyst, commented on the situation, stating, “Seems we have moved from ‘first they ignore you’ to ‘then they fight you’ in the FUD cycle.” He emphasized the resilience of zero-knowledge proof protocols and indicated that new scrutiny would arise once Hyperliquid’s circuits go public this week. Hence, the platform is under both technical and public examination.
Addressing Key Allegations
Several claims suggested testnet functions allowed retroactive volume manipulation. Hyperliquid clarified these are strictly testnet-only tools, designed for rigorous edge-case testing. The testnet functions cannot execute on mainnet, ensuring that user balances and trades remain unaffected.
Additionally, assertions about privileged users or unfair fee advantages influencing the HYPE airdrop were refuted. All transactions, fees, and rebates are fully visible onchain, and no mechanism exists to distort outcomes.
The so-called “CoreWriter godmode” was also misrepresented. Hyperliquid explained that CoreWriter allows smart contracts on HyperEVM to initiate actions within HyperCore, without granting unrestricted power to mint tokens or move user funds.
Furthermore, claims regarding chain freezes or single private key oracle manipulation were addressed. Upgrades follow validator consensus, similar to hard forks on other networks, and oracle prices rely on multiple validators using a weighted median across exchanges. Consequently, the network maintained stability even during high-volatility events.
Decentralization and Onchain Transparency
Hyperliquid highlights that 24 validators execute the state machine under BFT consensus. Unlike other major perpetual platforms like Lighter, Aster, or Binance, Hyperliquid enables anyone to verify every trade, user balance, and state change by running a node.
This level of transparency and decentralization is unique in the industry, ensuring accountability and reducing reliance on centralized sequencers. Moreover, HyperEVM is fully open-source, and HyperCore will soon follow the same path.
