According to Odaily Planet Daily, Hyperliquid officially announced in its Discord channel that the XPL market experienced significant volatility today, with the mark price increasing approximately 2.5 times in a matter of minutes. Throughout this period, the Hyperliquid blockchain operated normally as designed, without any technical issues. Liquidations were first executed based on the order book, followed by the activation of the automatic deleveraging (ADL) mechanism in accordance with the public protocol. Hyperliquid utilizes a fully segregated margin system, isolating all user profits and losses from other asset positions. This liquidation and ADL only affected XPL positions, and the protocol did not incur any bad debts.

The pre-listing market is inherently unpredictable. Hyperp’s robust mark price formula effectively prevents instantaneous spikes, requiring the order book price to remain high for several minutes before triggering liquidation.

Finally, some users have expressed the desire to use high collateral positions for short selling. After the next network upgrade, the hyperp mark price will be limited to 10 times the 8-hour mark price EMA.