The review states that Hyperliquid XPL before the flash crash, 16 related wallets collectively withdrew margin.

AT A GLANCE

XPL Before the flash crash, 16 related wallets collectively withdrew margin,HLP and the liquidation vault subsequently lost approximately 555800 USD。

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XPL Flash-crash review:Hyperliquid above 16 related wallets withdrew margin in advance, causing HLP losses for the liquidation vault 556000 USD

BlockBeats reported that November 2, filo, a member of the liquidity service provider Quote Markets, published a review of November 1 Hyperliquid on XPL's flash-crash event, stating that November 1 on 04: 32（UTC），XPL on Hyperliquid fell from its opening price to its low by 18%within a single minute, while Bitcoin's low over the same period fell only 0.04%from its opening price. Before this volatility occurred, 16 related wallets used 4 groups of fund-transfer networks to establish large XPL long positions and collectively withdrew margin before the price decline. Among them, 12 wallets 04: 24 from 04: 32 to 20 completed withdrawals, withdrawing approximately 2038600 USD in total, while another 7 withdrawals were rejected due to insufficient balances. The data show that these wallets exhibited similar fund flows, withdrawal tests, and staggered buying behavior. The analysis considers them likely to be controlled by the same operator or multiple participants acting in coordination.

Before the price decline, these 16 wallets collectively held approximately 269000000 coins XPL long positions, valued at approximately 23090000 USD, accounting for a substantial proportion of the increase in open interest over the same period. 04: 32: 43，Hyperliquid first triggered the relevant liquidations. At that time,XPL on Binance and Hyperliquid had both already fallen by approximately 1 over the preceding 6%minutes, indicating that the price decline preceded the start of Hyperliquid liquidations. Subsequently,HLP the liquidation vault took over approximately 160000000 coins XPL, valued at approximately 12177000 USD, and lost approximately 75 during the subsequent sell-off lasting approximately 555800 USD minutes. Of this, approximately 282400 USD resulted from the difference between the takeover price and the Binance market price; approximately 260300 USD resulted from the further decline in XPL during the sell-off; and approximately 5218 USD was in transaction fees. This loss represented approximately HLP of 0.33%total funds, but was equivalent to 55.6%。

of the liquidation vault's own funds. These 16 wallets' overall trading result on Hyperliquid was still a loss of approximately 711000 USD. There is no evidence that they profited on the platform through this operation. Although the sequence of the advance margin withdrawals and liquidations is clear, public on-chain data cannot confirm whether these wallets directly caused the XPL price decline, nor can it determine the identity of the actual sellers or whether they established hedging positions on other trading platforms. The report also emphasized that the relevant conclusions are based solely on public data from Hyperliquid and Arbitrum. Accounts and complete trading data from other trading platforms are not visible; therefore, the possibility that the related wallets profited on other platforms cannot be ruled out.

Key points

Quote Markets team member filo stated that November 1 on 04: 32（UTC），XPL on Hyperliquid fell from its opening price to its low within a single minute by 18%。
Bitcoin's low over the same period fell only 0.04%。
16 related wallets used 4 groups of fund-transfer networks to establish large XPL long positions, and collectively withdrew margin before the price decline.
Among them, 12 wallets 04: 24 from 04: 32 to 20 completed withdrawals, withdrawing approximately 2038600 USD in total; another 7 withdrawals were rejected due to insufficient balances.
Before the price decline, 16 wallets collectively held approximately 269000000 coins XPL long positions, valued at approximately 23090000 USD。
04: 32: 43，Hyperliquid first triggered the relevant liquidations; at that time,XPL on Binance and Hyperliquid had both already fallen by approximately 1 over the preceding 6%。
HLP The liquidation vault took over approximately 160000000 coins XPL, valued at approximately 12177000 USD, and lost approximately 75 during the sell-off lasting approximately 555800 USD。
Approximately 282400 USD of the loss resulted from the difference between the takeover price and the Binance market price; approximately 260300 USD resulted from the continued decline in XPL during the sell-off; and approximately 5218 USD was in transaction fees.
This loss represented approximately HLP of 0.33%total funds, equivalent to 55.6%。
16 wallets' overall trading result on Hyperliquid was still a loss of approximately 711000 USD. There is no evidence that they profited on the platform through this operation.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The sequence described in the report is: the relevant wallets first withdrew margin,XPL followed by a rapid decline that triggered liquidations,HLP after the liquidation vault took over a large number of positions, it continued selling, ultimately generating losses. The price decline preceded Hyperliquid the first liquidation, but public data are insufficient to prove that the relevant wallets caused the decline.

Why it matters to readers

HLP The liquidation vault's approximately 555800 USD loss was equivalent to 55.6%of its own capital; the incident also showed that large long positions may shift losses to the liquidation vault during rapid declines and liquidations.

Beginners should distinguish between temporal sequence and causality: wallets withdrawing funds in advance, a price decline, and liquidations occurring in sequence do not prove that the former caused the latter.

Risks and unknowns

It cannot be confirmed whether 16 wallets were controlled by the same operator, or whether multiple participants acted in coordination.
Public on-chain data cannot confirm whether these wallets directly caused the XPL price decline.
The identity of the actual sellers cannot be determined.
It cannot be determined whether the relevant wallets established hedging positions or made profits on other trading platforms.
The conclusion is based only on Hyperliquid and public Arbitrum data; accounts on other platforms and complete transaction data are not visible.

The review states that Hyperliquid XPL before the flash crash, 16 related wallets collectively withdrew margin.

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