The XPL token, launching as the asset of the Plasma network, experienced significant price fluctuations on Hyperliquid, prompting questions about potential market manipulation by large investors.
Surge and Crash of XPL on Hyperliquid
The XPL token, in pre-contract trading, surged on Hyperliquid in early trading hours on August 27, reaching $1.80 before crashing. This spike was triggered by a large investor's position, who quickly closed the trade, realizing $16 million in profits within a minute.
Role of Large Trades and Manipulation
The whale trader also placed limit orders worth $25 million at $0.20 per XPL, suggesting an expectation of an even larger price drop. This manipulation led to a significant liquidity drain and a cascade of liquidations for other traders. In total, two whale addresses made $27.5 million from long positions on XPL, hinting at possible insider manipulation.
Suspected Involvement of Justin Sun
The trades on Hyperliquid occurred during early Beijing hours, raising suspicions that the wallet might belong to Justin Sun, the founder of TRON. This suspicion is backed by transaction data pointing to a successful manipulation by a high-profile market participant.
The trading situation surrounding XPL raises crucial questions about market manipulation in nascent token markets and how large investors can affect liquidity and prices. The Hyperliquid platform remains under scrutiny from traders and analysts.
