Four crypto whales reportedly netted $47.5 million in profits following a 200% price spike in the XPL token on the decentralized exchange Hyperliquid, triggering allegations of market manipulation.
XPL Price Soars 200% in Minutes
The Plasma blockchain’s XPL token surged from under $0.60 to $1.80 within minutes, creating one of the most dramatic short squeezes in recent memory.
According to Spot On Chain, wallet 0xb9c emerged as the main orchestrator, earning over $15 million in profits.
Massive Losses for Other Traders
While whales profited, multiple traders faced heavy losses.
- One trader lost $4.59 million on an XPL position.
- Another user, identified as CBB, admitted losing $2.5 million, vowing never to trade isolated markets again.
Justin Sun Allegedly Linked
On-chain analyst MLM suggested that Tron founder Justin Sun might be behind wallet 0xb9c, citing aggressive long positions that cleared the entire order book.
The wallet is still holding an $8.6 million XPL position with $614K unrealized profit, per Hypurrscan data.
The allegations come months after a $6.26 million exploit involving JELLY token, which exploited Hyperliquid’s liquidation parameters. Critics argue that whales are exploiting HLP vulnerabilities, raising concerns about the security and fairness of decentralized platforms compared to centralized exchanges.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.