On November 1st, Hyperliquid experienced a flash crash in XPL trading. Sixteen linked wallets withdrew approximately $2.0386 million in margin before the price plunge, causing the HLP liquidation vault to take over approximately 160 million long XPL positions. HLP sold these positions within 75 minutes, incurring a loss of approximately $556,000. The investigation found no direct evidence that these wallets caused the crash, and the 16 wallets collectively lost approximately $711,000. XPL had already fallen by about 6% before Hyperliquid's initial liquidation, with even greater volume of active selling in Binance perpetual contracts during the initial phase.
