A recent whale trade on the crypto exchange Hyperliquid gained attention as it quickly invested $16 million in XPL tokens and secured substantial profit.
The $16 Million Trade
The whale executed a trade depositing $16 million in USDC on Hyperliquid, resulting in a sharp price increase of XPL from $0.58 to $1.80 in a very short time. According to Lookonchain, the wallet partially closed its position within a minute, realizing a profit of $14 to $16 million.
Market Reaction and Liquidations
Following the trade, the price of XPL soared by 200% in just two minutes, leading to the liquidation of traders' positions. Notably, one trader reported a loss of $185,000 during this surge. A total of $16.6 million in short positions were liquidated, and trading volume for XPL reached $161 million within just 24 hours.
Lessons for Retail Traders
The XPL event highlights the risks of trading in thin markets. Large orders can clear the order book completely, triggering a chain reaction of liquidations, leaving retail traders powerless to respond. For whales, it was another profitable day, while retail traders faced a costly reminder of the market's harsh realities.
The whale's trade on Hyperliquid illustrated both the risks and opportunities in crypto trading, especially for participants with limited resources.
