Whale Sweeps XPL Orderbook on Hyperliquid, Nets $16M in 1 Minute
A large whale address on Hyperliquid executed a massive XPL orderbook sweep. The trader bought millions of XPL tokens, triggering the liquidation of all short positions and netting a $16 million profit within one minute. This aggressive maneuver drove XPL’s price up more than 200% to $1.80. On-chain analysis identifies the wallet (0xb9c...6801e) sourcing funds from 4.99M USDC and 10.98M USDT. Rumors link the address to Justin Sun due to historical ETH transfers, but no direct evidence exists. Since August 24, the whale had quietly accumulated XPL longs. After the squeeze, it still holds $8.58M in XPL positions with $620k unrealized gains. The event highlights the risks of leveraged shorts and market manipulation on DeFi platforms. Traders should monitor XPL volatility and the potential for similar short squeezes on Hyperliquid.
Bullish
Short squeeze maneuvers typically drive rapid price increases as leveraged shorts are forced to close. The $16M profit whale trade on Hyperliquid caused XPL to surge 200% within two minutes, demonstrating strong buying pressure. Historically, such squeezes in DeFi and crypto markets (e.g., meme coin rallies or gamma squeezes) lead to significant short-term rallies but also increased volatility. In the short term, XPL may continue to climb as momentum traders chase gains. Over the long term, however, the absence of fundamental catalysts for XPL and potential profit-taking could result in corrections. Traders should be cautious of heightened volatility but may capitalize on swing trades around similar orderbook sweeps.