Binance and Bybit have changed the set of trade data they publish to show one liquidation per second instead of reporting all liquidations. OKX also shows a maximum of one order per second, and their data does not reflect the total number,” Lunde said.
By limiting the transparency of liquidation data and hiding important information as well, exchanges gain a deeper understanding of the overall risk profile than any other organization, Lunde believes. And some may even be interested in reselling trade information that the rest of the market does not have.
In cryptocurrency markets, a liquidation is when an exchange forcibly closes a trader’s leveraged position due to a partial or complete loss of their initial margin. This occurs when a trader fails to meet the margin requirements of a leveraged position, meaning they do not have sufficient funds to maintain an open trade. Liquidations occur in both margin and futures trading.
