Came across TokenPost / ChainCatcher: XPL flash-crashed today, and Hyperliquid’s HLP vault was forced to take over liquidated long positions, ultimately recording a loss of about $556,000.
Key facts: 16 wallets continuously built XPL long positions starting 10/29, totaling about 269 million tokens with a notional exposure of about $23 million; 12 of them withdrew about 2.02 million USDC before the drop, reducing their margin exposure. XPL fell from about 0.086431 to 0.069429. After a cascade of liquidations, HLP took over about 160.39 million tokens at an average price of about 0.07592, for a notional value of about $12.18 million. It eventually closed the positions at about 0.0725, losing about $556,000. HLP is Hyperliquid’s community vault, responsible for providing liquidity and executing liquidations.
Taking over liquidated positions—the vault once again stepped in to support the market.
#Hyperliquid #XPL
Key facts: 16 wallets continuously built XPL long positions starting 10/29, totaling about 269 million tokens with a notional exposure of about $23 million; 12 of them withdrew about 2.02 million USDC before the drop, reducing their margin exposure. XPL fell from about 0.086431 to 0.069429. After a cascade of liquidations, HLP took over about 160.39 million tokens at an average price of about 0.07592, for a notional value of about $12.18 million. It eventually closed the positions at about 0.0725, losing about $556,000. HLP is Hyperliquid’s community vault, responsible for providing liquidity and executing liquidations.
Taking over liquidated positions—the vault once again stepped in to support the market.
#Hyperliquid #XPL
