Bybit CEO: The problems faced by Hyperliquid also exist on CEX, but CEX's risk management measures are more comprehensive

According to BlockBeats, on March 13th, Bybit co-founder and CEO Ben Zhou posted on social media discussing his views on the "massive liquidation of giant whale ETH positions on Hyperliquid", stating: This ultimately sparked discussions about leverage, DEX, and CEX providing low or high leverage capabilities. Essentially, what happened was a giant whale using Hyperliquid's clearing engine to exit. In the case of large amounts of funds and high leverage, it is difficult to exit quickly, and there will be huge slippage in market orders. However, attempting to push up the liquidation price by extracting floating profit funds and triggering liquidation, and letting Hyperliquid take over the entire position at the liquidation price, can lead to a smooth exit. The one who suffers losses is Hyperliquid. In this situation, CEX and DEX face the same challenge, as Bybit's clearing engine also takes over the entire position when the whale is liquidated. At present, Hyperliquid has reduced overall leverage, which is a method and perhaps the most effective one, but it will harm the business as users hope to open higher leverage. In addition, Hyperliquid can also consider deploying tools such as dynamic risk limiting mechanisms: as the position increases, the overall leverage decreases according to the size of the position. In CEX, the opening capacity of this giant whale will decrease by about 1.5 times. However, if users use multiple accounts (without KYC and with extremely low account opening costs) to achieve the same goal, this does not solve the problem. So this raises the question of whether DEX really wants to maintain high leverage in the long term and avoid this issue. They may need to deploy many CEX level risk management measures, such as market monitoring to detect abusers and market manipulators, OI restrictions to control overall OI, and so on. Even though Hyperliquid has reduced its leverage (BTC to 40 times, ETH to 25 times), it may still be susceptible to abuse.