The massive XPL liquidation on HyperLiquid was no accident—it mirrored the earlier JELLYJELLY incident. This wasn’t mere market volatility but a blatant "liquidity hunt" exploiting systemic flaws, human psychology, and market structure weaknesses.
Key Events (On-Chain Data)
05:35 AM: Whale address 0xb9c…6801e injected massive USDC into HyperLiquid, opening a 3x leveraged long position on XPL. Its aggressive buys wiped out the order book, triggering a vertical price surge.
05:36–05:37 AM: XPL skyrocketed from ~$0.60 to ~$1.80 (200%+) in 2 minutes, liquidating short positions (e.g., $4.59M loss for 0xC2Cb, $2M for 0x64a4).
Profit-Taking: At the peak, the whale closed its position in 1 minute, locking ~$16M profits. Two collaborating addresses exited simultaneously, totaling ~$38M gains.
Post-Attack Holdings: The whale retained 15.2M XPL ($10.2M), suggesting intent to influence future price action.
How the Snipe Worked
- Liquidity Exploit: XPL’s pre-launch contract had minimal liquidity, allowing whales to dominate pricing with 3x leverage.
- Liquidation Spiral: Price surges forced short liquidations, whose buybacks further fueled the rally—a "death spiral."
- Coordinated Attack: At least 4 addresses synchronized funding, entry, and exit.
- Platform Flaw: HyperLiquid’s lack of external oracles let whales manipulate prices freely.
JELLYJELLY Flashback
On March 26, a whale dumped JELLYJELLY to crash prices, forcing HyperLiquid’s HLP pool to short. It then reversed to buy, causing $12M losses. Despite post-incident fixes, XPL proved vulnerabilities persist.
Survival Guide
- Avoid "Shallow Pools": Steer clear of low-liquidity pre-launch contracts or new tokens.
- Leverage = Noose: Keep positions under 5% of capital—survival trumps greed.
- Spot Red Flags: Unexplained pumps or large fund inflows signal danger (track via Onchain Lens/Lookonchain).
- Choose Transparent Platforms: Prioritize those with external oracles and deep liquidity.
- Kill the Get-Rich Fantasy: Whales profit from rule gaps;散户 lose chasing mirages.
Final Warning: In this jungle, the real predators aren’t price swings—they’re the ones weaponizing rules against you. Don’t be prey.
