Hyperliquid Clarifies False Accusations: Platform's Status Transparent and Verifiable, Progressive Decentralization Will Ultimately Be Fully Open Source

On December 22, Hyperliquid issued a clarification addressing a recent article that leveled unfounded accusations against the platform. The article alleged issues with Hyperliquid’s solvency, integrity, and transparency; the protocol responded to 10 specific claims as follows: 1. **$3.62B under-collateralization**: False. The article’s author overlooked HyperEVM USDC (parallel to the Arbitrum bridge). Current total USDC holdings: $43.51B. 2. **Transaction volume manipulation via TestnetSetYesterdayUserVlm**: False. This is a testnet-only feature and cannot be invoked on mainnet. 3. **Privileged users (fee waivers, airdrop manipulation)**: False. All fees, balances, and transactions are on-chain visible; no distortion mechanisms exist. 4. **CoreWriter “God Mode” (minting, fund transfers)**: False. This refers to how HyperEVM smart contracts send operations to HyperCore—no such privileged access exists. 5. **Governance freezing the chain (no undo)**: Misunderstanding. Freezing is for network upgrades (similar to hard forks on other chains). The L1 was not frozen during the November 2025 POPCAT event; only the Arbitrum bridge was auto-locked as a security measure. 6. **Single private key setting oracle prices instantly**: Misunderstanding. The HIP-3 oracle is configured by the deployer (using MPC, etc.). Validator-operated perpetual contracts use a weighted median price with no delays to ensure security. 7. **8 undisclosed addresses controlling all transactions**: False. Some transactions are sent directly by validators; future upgrades will include MEV and anti-censorship mechanisms. 8. **Clearing cartel with unfair advantage**: Misunderstanding. Only HLP can backstop clearing, deposits are permissionless, and most clearing occurs via an order book. 9. **Hidden lending protocol (over $1M in funds)**: False. Portfolio margining, lending, and HLP were publicly announced as pre-alpha versions with documented records. 10. **ModifyNonCirculatingSupply altering token supply**: False. HIP-1 token supply is fixed. This function is for display only and has no execution impact.