XPL's sudden crash causes approximately $556,000 in losses for Hyperliquid's HLP vault, with 16 associated wallets having established large long positions beforehand.

XPL crashed roughly 19.7% on November 1, dropping from $0.086431 to $0.069429 within minutes and triggering liquidations that left Hyperliquid's HLP vault with about $556,000 in realized losses. On-chain analyst Naeven traced the setup to 16 wallets funded via centralized exchanges that had been building XPL longs since October 29, accumulating roughly 269 million XPL (about $23 million notional) ahead of the dump, with 14 of the wallets receiving funds through Binance two months earlier. Between 12:24 and 12:31 Beijing time, 12 of the wallets withdrew approximately 2.02 million USDC to reduce margin, and the price collapse followed around 12:32. The liquidation cascade forced HLP to absorb about 160.39 million XPL in long positions worth roughly $12.18 million at an average entry of $0.07592, which it then closed at approximately $0.0725. The episode raises questions about coordinated positioning against the HLP vault and potential market manipulation on Hyperliquid. Watch for Hyperliquid's response, any further on-chain forensics linking the wallets, and whether XPL volatility or HLP exposure continues.