Hyperliquid News Today: Hyperliquid's $6.2B Surge: KOLs Bet as DeFi's Liquidity Risks Loom

A key opinion leader (KOL) associated with the "Whale Hunting Operation" transferred 5 million USDC to Hyperliquid and executed buy orders for Ethereum (ETH), PUMP, and other tokens during a market dip, according to on-chain activity tracked by multiple sources. This move aligns with broader trends of large-scale capital flows into the decentralized exchange (DEX) platform, which has seen significant liquidity shifts in recent months A whale sold 314 billion PEPE to obtain 668.35 ETH and 203,000 USDC and then bought EIGEN, PUMP, and XPL^[1].

The KOL's actions coincide with a notable manipulation incident involving the XPL token on Hyperliquid in August 2025. Four whale addresses coordinated to inflate XPL's price by 200% to $1.80 within hours, generating combined profits of $47.5 million. A primary actor, identified as wallet 0xb9c, secured over $15 million from the scheme. The manipulation exploited Hyperliquid's isolated oracle system and lack of position limits, triggering $60 million in trader losses, including a $4.59 million hit for one account DeFi Market Manipulation: Analyzing the $XPL Hyperliquid Pump and Whale Profits^[2].

Hyperliquid responded by implementing safeguards, including a 10x hard cap on mark prices relative to an 8-hour exponential moving average and integrating external market data to prevent future distortions. However, these measures inadvertently created arbitrage opportunities, as XPL prices diverged between Hyperliquid and exchanges like Binance. The platform's AUM reached $6.2 billion in August 2025, driven by $304 million in USDC inflows and $47.6 million in ETH deposits Hyperliquid AUM Surpasses $6.2B Amid USDC and ETH Inflows^[3].

The manipulation highlighted systemic risks in DeFi ecosystems prioritizing growth over risk management. Hyperliquid's decision to list low-liquidity tokens like XPL made them vulnerable to coordinated attacks. Unlike centralized exchanges, which use circuit breakers and aggregated price feeds, Hyperliquid's design allowed a mere $184,000 in WETH to distort XPL's spot price significantly. Post-incident analysis emphasized the need for position limits, transparent oracles, and governance frameworks to mitigate such risks DeFi Market Manipulation: Analyzing the $XPL Hyperliquid Pump and Whale Profits^[2].

The KOL's recent activities reflect strategic positioning amid volatile market conditions. While the XPL manipulation underscored the dangers of illiquid perpetual markets, the KOL's USDC inflow and token purchases suggest confidence in Hyperliquid's ability to absorb large trades. This aligns with broader inflows into the platform, including a record $100 million USDC deposit by Galaxy Digital, which pushed Hyperliquid's USDC TVL to $5.23 billion Hyperliquid AUM Surpasses $6.2B Amid USDC and ETH Inflows^[3].