HLP earns $47,000 in XPL surge after $12 million JELLY loss

HLP, a liquidity provider on the Hyperliquid platform, recently experienced a sharp reversal in fortunes following volatile price movements in the XPL and JELLY tokens. This morning, during a sudden price surge in XPL, HLP reportedly earned approximately $47,000. The gains came after a prior incident in March, where HLP suffered losses of nearly $12 million due to a price manipulation event involving JELLY [1].

The XPL price surge occurred between 5:00 and 6:00 AM local time, during which a whale executed a large-scale long position, sweeping the entire order book and forcing all short positions to liquidate. This aggressive buying spree drove the price of XPL from an unknown baseline to $1.80 within two minutes—an increase of over 200%. During this period, the whale also closed part of the long positions, reportedly generating a $16 million profit in just one minute [1].

This event contrasts sharply with the earlier JELLY price anomaly. In late March, a single address was identified for holding 126 million JELLY tokens and manipulating the market. The whale initially sold off large amounts of JELLY to artificially depress the price, triggering a passive short position of 398 million JELLY in HLP, valued at about $15.3 million. The price was then driven upward through large buy orders, leading to massive losses for HLP [1].

In the aftermath of the JELLY incident, the Hyperliquid Foundation announced a settlement for users holding long positions in JELLY at the time of the anomaly. These users were to be compensated at the settlement price of 0.037555. In addition, the JELLY trading pair was delisted, and the platform implemented updated leverage and HLP liquidation mechanisms to prevent similar issues in the future [1].

The contrasting outcomes in these two cases highlight the unpredictable nature of crypto markets, particularly during abnormal price movements driven by large whale activities. While HLP managed to turn a profit in the XPL surge, the prior losses from the JELLY anomaly underscore the systemic risks liquidity providers face when exposed to sudden and extreme price swings.

Source: [1]title:HLP earned approximately $47,000 this morning during the XPL price surge, after previously losing nearly $12 million during the JELLY price anomaly. (https://www.theblockbeats.info/en/flash/309355)