Understand the hidden pitfalls of DeFi derivatives trading from $XPL events

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The huge liquidation of XPL staged in HyperLiquid this time is not an accident, because it is not a simple market fluctuation, but a blatant "liquidity hunting" that accurately exploits the weaknesses of mechanisms, humanity and market structure.

According to on-chain data monitoring, the core process of this incident is as follows:

  • 05:35 a.m.: An address with 0xb9c... The 6801e whale suddenly invested a huge amount of USDC into HyperLiquid and opened a long position on XPL tokens with 3x leverage. Its ferocious buying momentum instantly wiped out the entire order book, causing the XPL price to start pulling up vertically.

  • 05:36 – 05:37: The XPL price surged from nearly $0.6 to a peak of about $1.80 in just about 2 minutes, an increase of more than 200%. The sharp rise in price triggered the liquidation of a large number of short positions, with addresses losing about $4.59 million 0xC2Cb and 0x64a4 losing about $2 million....

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