{"id":33196,"date":"2025-08-28T12:38:13","date_gmt":"2025-08-28T09:38:13","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=33196"},"modified":"2025-08-28T12:40:52","modified_gmt":"2025-08-28T09:40:52","slug":"sudden-surge-in-xpl-premarket-price-leads-to-17-million-in-liquidations","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sudden-surge-in-xpl-premarket-price-leads-to-17-million-in-liquidations\/","title":{"rendered":"Sudden Surge in XPL Premarket Price Leads to $17 Million in Liquidations"},"content":{"rendered":"<p>The decentralized exchange Hyperliquid <a href=\"https:\/\/t.me\/hyperliquid_announcements\/421\">announced<\/a> the introduction of new protective mechanisms following a sharp increase in the premarket price of the XPL token. The incident resulted in mass liquidations exceeding $17 million.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/AD_4nXeJxy1CXsQHN-T6DpA-od22kMQSL3Xz75y4eySF8Q09czenFT9zlifLtV8Kv7yOjpTE8juKUNNMtgU1EZRrONBcCDGoDJ5Q1-qUPCa_uTPB348Kjb-XLrHN5LUdrpGlDw2z_WdlCA.webp\" alt=\"Sudden Surge in XPL Premarket Price Leads to $17 Million in Liquidations\" class=\"wp-image-264688\"\/><figcaption class=\"wp-element-caption\">Hourly chart of XPL\/USD on Hyperliquid exchange. Source: <a href=\"https:\/\/app.hyperliquid.xyz\/trade\/XPL\">Hyperliquid<\/a>.\u00a0<\/figcaption><\/figure>\n<p>The upcoming network update on the platform will include:\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li>price limit \u2014 the maximum contract price of hyperp will be capped at 10 times the eight-hour <span data-descr=\"exponential moving average\" class=\"old_tooltip\">EMA<\/span> to protect short traders;<\/li>\n<li>external data integration \u2014 the price calculation formula will begin using information from other markets (such as Binance&#8217;s premarket platform) to enhance resistance to manipulation.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">What Happened with XPL?\u00a0<\/h2>\n<p>XPL is a yet-to-be-launched token of the stablecoin project Plasma, supported by the Bitfinex exchange. At the end of July, the platform&#8217;s team <a href=\"https:\/\/forklog.com\/en\/news\/plasma-stablecoin-project-raises-373-million-in-token-sale\">completed<\/a> a public coin sale, raising $373 million.\u00a0<\/p>\n<p>Later, several exchanges launched XPL premarket trading. On August 26, the XPL\/USD contract price on Hyperliquid surged 2.5 times, peaking at around $1.8, while on platforms like Binance, the rate was $0.55.<\/p>\n<p>The sharp rise was followed by a correction, triggering mass trader liquidations exceeding $17 million, according to <a href=\"https:\/\/www.coinglass.com\/currencies\/XPL\">CoinGlass<\/a>.<\/p>\n<p>According to Spot On Chain analysts, the surge was caused by four large addresses that fully purchased XPL sell orders, collectively earning over $46 million.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8\ud83d\udca5 Whale manipulation on <a href=\"https:\/\/twitter.com\/hashtag\/Hyperliquid?src=hash&#038;ref_src=twsrc%5Etfw\">#Hyperliquid<\/a> sent <a href=\"https:\/\/twitter.com\/search?q=%24XPL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$XPL<\/a> soaring 200% to $1.80 in minutes earlier today, marking one of the wildest short squeezes and wealth redistributions we&#8217;ve seen!<\/p>\n<p>Here\u2019s the breakdown:<\/p>\n<p>Manipulators&#8217; profits:<br \/>\ud83d\udd39 0xb9c (main orchestrator): +$15.11M<br \/>\ud83d\udd39 0xe41:\u2026 <a href=\"https:\/\/t.co\/KiWDybLJj9\">pic.twitter.com\/KiWDybLJj9<\/a><\/p>\n<p>\u2014 Spot On Chain (@spotonchain) <a href=\"https:\/\/twitter.com\/spotonchain\/status\/1960589589770592375?ref_src=twsrc%5Etfw\">August 27, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On-chain analyst known as MLM noted that one of the wallets involved in the manipulation is allegedly linked to TRON founder Justin Sun.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This wallet, presumed to be associated with Justin Sun, just longed millions of <a href=\"https:\/\/twitter.com\/search?q=%24XPL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$XPL<\/a> on Hyperliquid, clearing the entire order book and liquidating everyone. <\/p>\n<p>He then started closing his long, making $16M in just one minute. <a href=\"https:\/\/twitter.com\/search?q=%24XPL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$XPL<\/a> pumped to $1.80, which is over 200% in 2 minutes\u2026 <a href=\"https:\/\/t.co\/o1x1AdCLeE\">pic.twitter.com\/o1x1AdCLeE<\/a><\/p>\n<p>\u2014 MLM (@mlmabc) <a href=\"https:\/\/twitter.com\/mlmabc\/status\/1960462635314635207?ref_src=twsrc%5Etfw\">August 26, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to him, this address opened a long position on XPL, bought up all orders in the order book, and liquidated traders.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cHe then began closing his position, earning $16 million in just one minute. The XPL price soared to $1.8, which means a rise of over 200% in two minutes. He still holds a long on 15.2 million XPL ($10.2 million),\u201d wrote MLM.\u00a0<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Community and Hyperliquid&#8217;s Reaction\u00a0<\/h2>\n<p>Users criticized Hyperliquid. Spot On Chain analysts highlighted that in just a few months, whales have repeatedly exploited vulnerabilities in the <span data-descr=\"automated mechanism linked to exchange liquidation mechanism\" class=\"old_tooltip\">HLP<\/span> to manipulate coin prices on the platform, knocking out traders&#8217; positions.\u00a0\u00a0<\/p>\n<p>Community member RozeFi noted that such incidents could severely damage the exchange&#8217;s reputation.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud80c\udd6d The bigger risk<\/p>\n<p>\u2725 If Hyperliquid keeps allowing unchecked games like the XPL pump, confidence in its premarket model could collapse<\/p>\n<p>\u2725 One more repeat, and HL may be written off as a casino, not an exchange<\/p>\n<p>\u2725 Until then, retail remains bait for whales with deeper pockets\u2026<\/p>\n<p>\u2014 RozeFi (@DeFiRoze) <a href=\"https:\/\/twitter.com\/DeFiRoze\/status\/1960699945675341853?ref_src=twsrc%5Etfw\">August 27, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf Hyperliquid continues to allow unchecked manipulations like the XPL pump, confidence in its premarket model could collapse. One more such incident, and [the platform] may be written off as a casino, not an exchange,\u201d she wrote.\u00a0<\/p>\n<\/blockquote>\n<p>Others <a href=\"https:\/\/x.com\/ai_9684xtpa\/status\/1960622912257569065\">defended<\/a> the platform. They argued that the team acted within the rules and is not obligated to intervene or compensate for losses.<\/p>\n<p>Hyperliquid representatives emphasized that the blockchain and liquidation system operated correctly \u2014 without technical failures. Initially, forced position closures were conducted through the order book, but due to insufficient margin for some traders, the exchange switched to the <span data-descr=\"automatic deleveraging\" class=\"old_tooltip\">ADL<\/span> mechanism.\u00a0<\/p>\n<p>Developers also noted that the liquidations only affected the XPL market. The protocol did not incur any losses.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cPremarket markets are inherently unpredictable. Our algorithm deliberately delayed its response to avoid reacting to instant spikes and give the market time to stabilize,\u201d they added.\u00a0<\/p>\n<\/blockquote>\n<p>Back in late July, Hyperliquid <a href=\"https:\/\/forklog.com\/en\/news\/hyperliquid-faces-disruption-amid-traffic-surge\">experienced<\/a> a disruption due to a traffic surge. Later, the exchange <a href=\"https:\/\/forklog.com\/en\/news\/hyperliquid-reimburses-traders-nearly-2-million\">compensated<\/a> affected users with nearly $2 million.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hyperliquid announced new protective mechanisms after a sharp premarket price surge of XPL token led to $17 million in liquidations.<\/p>\n","protected":false},"author":1,"featured_media":33197,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Exchange announced new protective mechanisms against manipulation.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1823,1302,1619,1246],"class_list":["post-33196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-hyperliquid","tag-justin-sun","tag-pre-market","tag-scammers"],"aioseo_notices":[],"amp_enabled":true,"views":"257","promo_type":"1","layout_type":"1","short_excerpt":"Exchange announced new protective mechanisms against manipulation.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=33196"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33196\/revisions"}],"predecessor-version":[{"id":33198,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/33196\/revisions\/33198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/33197"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=33196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=33196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=33196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}