Hyperliquid Oil Orders Spur $170M Spoofing Concerns

Solidus Labs reported that two accounts placed and quickly canceled more than $170 million in oil-linked perpetual futures orders on Hyperliquid between March 8 and 10, during volatile energy trading. The activity was concentrated in Brent crude, with additional orders in WTI crude and natural gas. The accounts reportedly placed large orders on one side of the book while trading on the other. Solidus estimated about $119,000 in profit and said canceled order value was roughly 30 times the value of opposite-side executions. One example involved about $17 million in canceled sell orders and $425,000 in completed buys. The accounts had recorded $93 billion in lifetime notional volume on Hyperliquid. Solidus said the pattern was consistent with spoofing, but the trader’s identity and intent have not been established, and the report does not determine that a regulatory violation occurred. Hyperliquid says orders, cancellations and trades are recorded on a public blockchain; Trade.xyz says it uses order limits, external price feeds and market monitoring. The allegations add to calls by traditional exchanges, including CME Group and ICE, for greater US regulatory scrutiny. For traders, the case raises questions about order-book liquidity and execution quality in round-the-clock energy perpetuals, particularly when traditional markets are closed. It may also increase attention on Hyperliquid’s market surveillance and regulatory risks.