XPL Flash Crash Triggers Cascading Long Liquidations, Hyperliquid HLP Vault Takes Over Positions and Loses $556K

Odaily reports: According to on-chain data monitoring, today's XPL price flash crash resulted in a loss of approximately $556,000 for Hyperliquid's HLP vault. Prior to this, 16 wallets funded through centralized exchanges had been continuously building XPL long positions since October 29, collectively holding approximately 269 million XPL with a notional exposure of about $23 million. Of these, 14 wallets received funds transferred via Binance approximately two months ago, and 12 of them withdrew about 2.02 million USDC before the price decline to reduce margin exposure.

As XPL rapidly dropped from $0.086431 to $0.069429, a cascade of long position liquidations was triggered. Following the liquidations, the HLP vault passively took over approximately 160.39 million XPL long positions at an average cost basis of $0.07592, with a notional value of about $12.18 million. The HLP vault ultimately closed the positions at $0.0725, recording a loss of approximately $556,000.