On August 12, 2025, a significant event occurred on the Hyperliquid platform when a whale trade caused a complete wipeout of the XPL order book, leading to sharp price fluctuations.
Major Trade on Hyperliquid
A whale deposited $16 million USDC to buy 15.2 million XPL tokens, resulting in a total wipeout of the order book. Speculation arose regarding potential ties to Tron founder Justin Sun, although no confirmation has been provided.
Mass Liquidations and Their Consequences
The whale trade resulted in significant mass liquidations, with retail traders suffering $16.6 million in losses. Some traders lost up to $7 million USDC, highlighting the vulnerabilities of thin order books.
Regulatory Pressure and Market Consequences
Past incidents, such as the JELLY token squeeze, have similarly led to major losses on Hyperliquid. Experts suggest that such events could prompt stricter market regulations or changes in platform risk protocols.
The event on Hyperliquid emphasizes the fragility of the market and potential connections between large participants and significant price fluctuations, raising concerns about whale influence in the crypto market.
