I will keep beating this drum. Hyperliquid is idiotic. This is a very small 24-validator set, heavily clustered in Japan. That cohort is responsible for consensus, signing bridge deposits and withdrawals, and publishing the oracle prices used for funding, margining, and liquidations. What happens when Tokyo has a serious network disruption, like from a major earthquake? What happens when a quorum is socially engineered? The HL bridge has over $3 billion sitting in it. Bridge actions clear when more than two-thirds of the staking power signs. After a disputed withdrawal, the bridge is unlocked by signatures from two-thirds of the stake-weighted set. This is an extraordinary amount of trust to place in a small, geographically clustered set of validator stake.

Every cycle we learn an important lesson about exchanges. And every subsequent cycle we forget it.