Four Major Addresses Collude to Snipe XPL Hedge Positions for $46.1M Profit

On-chain analysis suggests that four major addresses may have colluded to snipe hedge positions in the $XPL token, collectively earning over $46.1 million in profits. According to on-chain analyst Ai Auntie (@ai9684xtpa), the attack began on August 24, with the leading address—0xb9c...6801e—building long positions repeatedly. On August 27, at 05:35 UTC, the address executed a large buy order that cleared the entire order book. This single transaction generated a profit of $16 million within one minute [1].

The timing and execution of the trades suggest a strategic effort to drive up the price of XPL and trigger stop-loss orders from short positions. The other three addresses involved in the operation started to close their positions for profit as the price hit a short-term peak, further reinforcing the coordinated nature of the attack.

Analysis of the addresses reveals that two of them shared a common source of funds and that all three major addresses had used the Debridge cross-chain protocol to fund their positions. The similarity in their operational patterns and the timing of their trades indicate a level of coordination and pre-planning [1].

Such attacks highlight the vulnerability of liquidation mechanisms in decentralized markets and the potential for exploitation through large-scale, pre-arranged trades. The use of cross-chain protocols to source funds adds an additional layer of complexity and opacity to such activities, making them difficult to trace and regulate.

The incident underscores the importance of robust risk management tools and transparency in decentralized finance (DeFi) markets. As the use of on-chain analytics grows, so too does the ability to detect and investigate such coordinated market manipulation events. However, the speed and anonymity provided by blockchain also present significant challenges for market integrity.

The events described are based on on-chain data and analysis from Ai Auntie. Further investigation is required to confirm the full extent of the collusion and the identities of those involved [1].

Source:

[1] Statistics: Suspected Four Major Addresses Colluded to Snipe XPL Hedge Positions, Profiting $46.1 Million (https://www.theblockbeats.info/en/flash/309383)