XPL's sudden crash caused Hyperliquid's HLP vault to lose approximately $556,000, while 16 linked wallets had built large long positions in advance

TechFlow reported on November 1 that, according to on-chain analyst Naeven's monitoring, XPL's sudden crash today resulted in an approximately $556,000 realized loss for the Hyperliquid Liquidity Provider vault (HLP).

Data shows that since October 29, 16 wallets funded through centralized exchanges had been continuously building XPL long positions, collectively holding approximately 269 million XPL before the crash, with a notional value of about $23 million. Funds for 14 of these wallets were transferred in through Binance two months earlier.

Today from 12:24 to 12:31 Beijing time, 12 of the related wallets withdrew approximately 2.02 million USDC before the crash, reducing their position margins. Then, around 12:32, the XPL price plunged from $0.086431 to $0.069429, a decline of approximately 19.7%.

Mass liquidations caused the HLP vault to passively take over approximately 160.39 million XPL long positions, valued at about $12.18 million, with an average takeover price of $0.07592. HLP subsequently closed the positions at approximately $0.0725, realizing a final loss of about $556,000.

Source: TechFlow