On August 27, 2025, Hyperliquid responded to a dramatic 200% rise in XPL prices by tightening its mark price formula to safeguard against market manipulation.
Hyperliquid's Response to XPL Volatility
Hyperliquid announced the formalization of a mark price formula following a significant assessment of price volatility. A major deposit of 15.2 million XPL tokens from address 0xb9c... triggered the price surge. New measures focused on improving pricing strategies will be employed to reduce potential market manipulations.
Impact on Traders and Liquidity
The manipulative event heavily impacted traders, resulting in cascading liquidations and significant financial losses. Minority investors suffered a collective loss totaling $16.6 million.
Community Reactions and Future Measures
The lack of a roadmap update initially caused uncertainty surrounding technological development priorities. Community speculation continues without direct answers from leadership. Hyperliquid employs automatic mechanisms to avert sudden price exuberance and utilizes historical experiences to implement preventive measures against rapid market manipulations.
The recent changes in Hyperliquid's rules underscore the necessity of robust liquidity controls to protect investor interests amidst increasing volatility.
