After an extreme short squeeze of XPL on Hyperliquid this week, the platform has launched a price protection mechanism and incorporated external quotes. However, this morning, a new wallet has once again gone long, seemingly trying to replicate the previous strategy. What will happen this time? (Background: 200% explosion in five minutes! Hyperliquid stages a bloody short squeeze of XPL, how do Whales hunt the market?) (Additional background: Analysis of Hyperliquid founder Jeff Yan: A Harvard genius builds a crypto empire with a 10-person team) Two days ago, the decentralized perpetual futures platform Hyperliquid witnessed an XPL token short-term big pump of 200%! And just today (29th) at 9 o'clock, Lookonchain again monitored a suspected new offensive from the same team: four new wallets appeared within just three hours, collectively depositing 10 million USDC to go long on XPL, seemingly trying to replicate the previous script. Unless you can survive a liquidation, do not trade on Hyperliquid unless you can survive a liquidation. Whale is attempting to manipulate $XPL to liquidate short positions. In the past 3 hours, a whale possibly the same whale from last time created 4 wallets and deposited 10M $USDC into #Hyperliquid to go… pic.twitter.com/KHMkxqNRZu — Lookonchain @lookonchain August 29, 2025 The Whale manipulated the coin price with 16 million USD To briefly recap, at that time, the price of the XPL token soared from about 0.6 USD to 1.8 USD in a matter of minutes, a rise of 200%, and the amount of short positions liquidated instantly accumulated to over 38 million USD. The main reason for the incident was that wallet address 0xb9c0, with about 16 million USD in USDC, combined with the 3x leverage provided by the platform, drained the sell orders, forcing a large number of shorts to passively close their positions in extreme slippage. The three blades behind the price drop The reason for such drastic fluctuations can be attributed to three major factors: First, thin liquidity. XPL is a low market cap pre-issued token, and the open orders depth on Hyperliquid could not withstand a tens of millions level capital impact. Second, high leverage. The 3x leverage amplified a real capital into three times the buying power, with a tiny push leading to avalanche-like price changes. Third, isolated internal Oracles. At the time of the incident, Hyperliquid's quotes were up to a 250% discrepancy compared to centralized exchanges like Binance, making it difficult for external arbitrageurs to intervene in real-time, allowing the whale to manipulate the situation in an "information island". Platform repairs: price protection and external quotes After the storm, Hyperliquid announced two emergency measures: First, the mark price cannot exceed 10 times the 8-hour exponential moving average; second, to introduce external market data from Binance and other sources to calculate the composite price, attempting to weaken the oracle's "island effect". The official announcement pointed out that if the new regulations are exceeded before they take effect, the system will use a lower price to calculate margin and liquidation lines to reduce the likelihood of being pumped again. If the aforementioned wallets really intend to launch another pump offensive, whether Hyperliquid's remedy mechanism can prevent the next drastic fluctuation remains to be seen, but the XPL incident has already sounded the alarm for the entire DeFi ecosystem: Decentralization does not mean inherently fair; only by incorporating liquidity, risk control, and information symmetry into the mechanism design can "open finance" truly serve all participants, rather than just individual whales. Currently, the XPL trading pair has been continuously oscillating upwards in the past 24 hours, with an increase of 54.97%, reminding investors to be cautious of fluctuations. Related reports Ethereum king returns, Base, Hyperliquid data soars... A review of the performance of 8 major public chains over the past 3 months PUMP token public sale eve: Hyperliquid pre-market premium 50%, community sees both bullish and bearish sides Hyperliquid ecosystem hot project review: DEX, DeFi, cross-chain, lending… "Another whale deposits ten million to go long on XPL at Hyperliquid, will the bloody short squeeze repeat? How will the officials respond?" This article was first published in BlockTempo, the most influential blockchain news media.
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Another Whale has deposited 10 million USD into Hyperliquid to go long on XPL, will a bloody short squeeze reoccur? How will the officials respond?
After an extreme short squeeze of XPL on Hyperliquid this week, the platform has launched a price protection mechanism and incorporated external quotes. However, this morning, a new wallet has once again gone long, seemingly trying to replicate the previous strategy. What will happen this time? (Background: 200% explosion in five minutes! Hyperliquid stages a bloody short squeeze of XPL, how do Whales hunt the market?) (Additional background: Analysis of Hyperliquid founder Jeff Yan: A Harvard genius builds a crypto empire with a 10-person team) Two days ago, the decentralized perpetual futures platform Hyperliquid witnessed an XPL token short-term big pump of 200%! And just today (29th) at 9 o'clock, Lookonchain again monitored a suspected new offensive from the same team: four new wallets appeared within just three hours, collectively depositing 10 million USDC to go long on XPL, seemingly trying to replicate the previous script. Unless you can survive a liquidation, do not trade on Hyperliquid unless you can survive a liquidation. Whale is attempting to manipulate $XPL to liquidate short positions. In the past 3 hours, a whale possibly the same whale from last time created 4 wallets and deposited 10M $USDC into #Hyperliquid to go… pic.twitter.com/KHMkxqNRZu — Lookonchain @lookonchain August 29, 2025 The Whale manipulated the coin price with 16 million USD To briefly recap, at that time, the price of the XPL token soared from about 0.6 USD to 1.8 USD in a matter of minutes, a rise of 200%, and the amount of short positions liquidated instantly accumulated to over 38 million USD. The main reason for the incident was that wallet address 0xb9c0, with about 16 million USD in USDC, combined with the 3x leverage provided by the platform, drained the sell orders, forcing a large number of shorts to passively close their positions in extreme slippage. The three blades behind the price drop The reason for such drastic fluctuations can be attributed to three major factors: First, thin liquidity. XPL is a low market cap pre-issued token, and the open orders depth on Hyperliquid could not withstand a tens of millions level capital impact. Second, high leverage. The 3x leverage amplified a real capital into three times the buying power, with a tiny push leading to avalanche-like price changes. Third, isolated internal Oracles. At the time of the incident, Hyperliquid's quotes were up to a 250% discrepancy compared to centralized exchanges like Binance, making it difficult for external arbitrageurs to intervene in real-time, allowing the whale to manipulate the situation in an "information island". Platform repairs: price protection and external quotes After the storm, Hyperliquid announced two emergency measures: First, the mark price cannot exceed 10 times the 8-hour exponential moving average; second, to introduce external market data from Binance and other sources to calculate the composite price, attempting to weaken the oracle's "island effect". The official announcement pointed out that if the new regulations are exceeded before they take effect, the system will use a lower price to calculate margin and liquidation lines to reduce the likelihood of being pumped again. If the aforementioned wallets really intend to launch another pump offensive, whether Hyperliquid's remedy mechanism can prevent the next drastic fluctuation remains to be seen, but the XPL incident has already sounded the alarm for the entire DeFi ecosystem: Decentralization does not mean inherently fair; only by incorporating liquidity, risk control, and information symmetry into the mechanism design can "open finance" truly serve all participants, rather than just individual whales. Currently, the XPL trading pair has been continuously oscillating upwards in the past 24 hours, with an increase of 54.97%, reminding investors to be cautious of fluctuations. Related reports Ethereum king returns, Base, Hyperliquid data soars... A review of the performance of 8 major public chains over the past 3 months PUMP token public sale eve: Hyperliquid pre-market premium 50%, community sees both bullish and bearish sides Hyperliquid ecosystem hot project review: DEX, DeFi, cross-chain, lending… "Another whale deposits ten million to go long on XPL at Hyperliquid, will the bloody short squeeze repeat? How will the officials respond?" This article was first published in BlockTempo, the most influential blockchain news media.