XPL Futures on Hyperliquid Experience $130 Million Liquidation Before Plasma Token Launch

Key Information:

Over 80% of open interest in XPL futures vanished in a matter of minutes due to a price surge exceeding 200%.
A significant whale trade initiated a series of liquidations that resulted in $16 million in profits while still retaining a $10 million position.
Many smaller traders reported substantial losses despite minimal leverage just prior to the official launch of the XPL token.

The futures market for Plasma’s upcoming XPL token on Hyperliquid faced intense volatility, with open interest plummeting from $160 million to $30 million in under 10 minutes.

Overview

A trader noted attempting to “hedge their XPL position with 1x leverage,” but ended up losing $1.4 million due to price manipulations. The price surged to $1.80, leading to widespread liquidations.

Traders suffer liquidation cascade on HyperLiquid

One trade reportedly triggered massive liquidation by going long tens of millions in XPL, effectively clearing the order book and initiating auto-deleveraging.

XPL/USD (HyperLiquid)

The trader behind this position netted $16 million within a minute, while another vaporized their $20 million long and earned approximately $25 million. Yet, many small investors found themselves in a precarious situation with reported losses.

This frenzy occurred just days ahead of the Plasma token’s debut, a blockchain initiative backed by notable investors including Founders Fund, Framework Ventures, and Bitfinex.