I saw $XPL being manipulated in price on Hyperliquid, it really left me stunned, directly leading to large-scale liquidations. To put it simply, the core issue is that liquidity is too low, and there are no restrictions on the large accounts dominating the order book; they are just using large funds in combination with high leverage to instantly clear the order book.

This operation is indeed impressive, but it is hard to define it as a hacking incident, as there is nothing technically wrong; it is purely a financial crush. I think this is the biggest challenge currently facing Perps dex: how to maintain openness while effectively controlling risk; it is truly an art.

In fact, centralized exchanges have faced similar issues in the past, but they have an ultimate trick: they simply do not allow withdrawals. This trick cannot be used in a decentralized environment. Therefore, while decentralization is good, this kind of risk control is indeed a big challenge that requires smarter mechanism design.

Looking at this $XPL situation, I think future platforms of this kind need to put more effort into liquidity management and monitoring large account behaviors; otherwise, this kind of being liquidated will surely happen again.