Hyperliquid experienced $10 billion in liquidations during a recent market downturn, sparking calls for regulatory scrutiny. Crypto.com CEO Kris Marszalek has urged regulators to investigate exchanges with high liquidation volumes, raising concerns about market fairness. In response, Hyperliquid CEO Jeff Yan defended the platform, highlighting its transparency and adherence to standard procedures to prevent bad debt. Yan assured that Hyperliquid's on-chain liquidation process is designed to maintain platform solvency. Amid these developments, Tushar Jain of Multicoin Capital proposed that exchanges should utilize insurance funds to protect users from value loss. The situation has intensified discussions on the need for regulatory oversight in the crypto exchange sector.