Hyper_Up

In the 8 minutes before XPL dropped 18% today, 11 Hyperliquid accounts pulled $1.62M of margin out of their XPL longs. Then they let the $12M position get liquidated into HLP at mark price. HLP ate ~$0.6M. Fresh accounts funded via CCTP. Test withdrawals 20-50 min before. 7 rejected withdrawals while scraping the margin to the limit. $0 left after. Looks planned. Whether the same operator was short on Binance, I can't see. Timeline (Nov 1, UTC) 👇 Oct 29-31 9 of the 10 largest accounts are created, each funded once via CCTP with $145k-$243k. On Hyperliquid the sender only shows as Circle's deposit wallet. 03:45-04:15 10 of the 11 make test withdrawals of $500-$1.6k. 04:24-04:32 10 accounts withdraw $98k-$232k each, $1.62M total. 7 more attempts get rejected: "Insufficient balance for withdrawal". Every dollar the margin check allows comes out. The longs stay open. 04:32 XPL -18% in 1 minute, 0.086 to 0.0705. $11.2M (144M XPL) trades on Binance perps in that minute. Hyperliquid itself barely trades. 04:32:50-04:32:59 All 11 get liquidated into the HLP backstop vault, plus 19 small accounts. 160M XPL / $12.2M taken over at avg 0.0759, in a minute that printed a 0.0705 low. After All 11 accounts: $0. Backstop vault: $1.00M to $0.44M while unwinding. HLP daily PnL: +$21k to -$655k (~0.4% of the vault). Why it works Dumping $12M of XPL into the HL book would wreck your own exit. Drain the margin first, and a small move is enough to trigger liquidation. Liquidation hands the whole position to HLP at mark with zero slippage. HLP eats the drop after. Same playbook as the Mar 2025 ETH whale that cost HLP $4M. If they were also short on Binance, the crash itself was the profit. Addresses + fills in the reply. $HYPE $XPL

I’m looking at $HYPE now and the potential bottom. The level is definitely interesting, but it’s important to understand that for now we’re just interacting with the weekly fractal around 29.35$. Liquidity has been taken from it, but that alone doesn’t confirm anything yet. If the week had closed green, meaning above the opening level, roughly above 29.7$, then we could talk about a more confident local reversal. The first serious problematic zone above is 31.50$. If the market can break through it and hold, then we could really start considering the scenario that this was a local bottom. But I would still give the price one more week to see confirmation. If things develop favorably, the logical upside target is around 38$ this is the nearest significant area above where the market could return during a normal recovery structure. That’s roughly how I see the situation right now.