Whale Traders Profit $47M Manipulating XPL on Hyperliquid

On August 27, 2025, four whale addresses manipulated the XPL token price on Hyperliquid, yielding $47.67 million in profits while causing multimillion-dollar losses for several traders.

The incident highlights vulnerabilities in DeFi markets, sparking calls for stricter controls on leverage and anti-manipulation measures.

Coordinated Whale Attacks Net $47 Million in Minutes

The whale addresses entailed 0xb9c, 0xe41, 0x006, and 0x894. They strategically manipulated the XPL token market on the Hyperliquid platform. The primary coordinator, 0xb9c, secured $15.11 million alone. The addresses, working in concert, executed massive leveraged transactions, resulting in compelled liquidations for other traders.

Victims like address 0xC2Cb incurred losses totaling $4.59 million. XPL traded from $0.40 to $1.80 in minutes, sparking dialogue on the necessity for improved regulatory scrutiny. Public commentary from on-chain analysts highlights vulnerabilities in existing systems. Notably, analyst [@lookonchain] called attention to a whale’s USDC deposit correlating with this profit surge. Despite the financial upheaval, no official comment has been released from Hyperliquid’s management or regulatory bodies.

A whale moved 16M USDC to Hyperliquid, pumped XPL to $1.8, and closed for $14M profit in under an hour.

DeFi Platforms Urged to Prevent Token Manipulation

Did you know? In a similar incident with JELLY tokens, Hyperliquid saw $12 million in losses, showing a recurring pattern of manipulation in leveraged markets. These incidents underscore perpetual contract risks in DeFi.

According to CoinMarketCap data, Plasma (XPL) currently trades at $0.51, with no circulating supply or established market cap. Trading volume surged over 293% in 24 hours. Despite its market dominance being inconsequential, XPL reported over 212% growth over the past week.

Experts from Coincu research emphasize the requirement for industry reforms, pointing out the fragility of markets driven by high leverage and thin liquidity. Analysts also underscore the importance of developing safeguards to prevent similar occurrences across other DeFi platforms.