Hyperliquid Faces Whale Manipulation as XPL Price Soars

Hyperliquid faces allegations of whale-driven price manipulation after a sharp rally in the XPL token on its decentralized exchange. This event led to significant profits for some large wallet holders and notable losses for others.

Many traders sustained significant losses due to the alleged manipulation, prompting calls for improved risk management on exchanges. Immediate updates to Hyperliquid’s technical features reflect a need for better security practices.

XPL, a Plasma blockchain token, experienced a sudden 200% price spike.

The event, identified as orchestrated by wallets including “0xb9c,” profited millions before prices reverted. No direct involvement from Hyperliquid’s leadership has been confirmed, although system upgrades are underway.

Whale manipulation on #Hyperliquid sent $XPL soaring 200% to $1.80 in minutes earlier today, marking one of the wildest short squeezes and wealth redistributions we’ve seen!

Traders affected by XPL price volatility witnessed massive losses.

A trader known as “CBB” reported losing $2.5 million, while another lost $4.5 million. The manipulation-triggered liquidity issues intensified scrutiny over the exchange’s transparency.

Potential regulatory or technological shifts could arise from this incident. The market demands stronger protocols against manipulative practices, and Hyperliquid’s planned updates, such as price caps and external oracle integration, aim to address these vulnerabilities. SpotOnChain and others continue to urge for comprehensive transparency and accountability measures.