A suspicious address related to Justin Sun executed a large leveraged trade, causing significant volatility in the XPL token market.
This event created a sudden price jump of over 200% in just 2 minutes, while also allowing the above address to realize profits of 16 million USD in just one minute of trading.
MAIN CONTENT
The suspicious address related to Justin Sun bought a large amount of XPL on Hyperliquid, clearing the order book and liquidating all short accounts.
Realized profits of 16 million USD in just one minute as the price of XPL surged to 1.80 USD, increasing over 200% in 2 minutes.
The capital was transferred from addresses with a history related to and showing traces of transferring ETH to Justin Sun in 2018, but there is no direct evidence.
How has this suspicious address impacted the XPL token market?
This address started buying a large amount of XPL tokens on Hyperliquid from 03:35 Vietnam time, while also clearing the entire existing order book and forcing short positions to liquidate.
This move creates strong buying pressure, propelling the price of XPL to soar from below 0.60 USD to around 1.80 USD, an increase of over 200% in just 2 minutes. This event also allowed the address holding long positions to realize profits of 16 million USD in just one minute.
Is there any verifiable evidence proving that this address belongs to Justin Sun?
According to the analysis tracing the source of capital, this address transferred ETH to an address believed to be related to Justin Sun five years ago; however, there is no convincing direct evidence confirming this is his address.
This address started accumulating long positions from August 24 with small volumes, not significantly impacting the market before the spike in trading on August 27.
What is the source of capital and the scale of trading?
The capital used in the trade primarily comes from two main sources: nearly 5 million USDC transferred from another address three hours earlier and nearly 11 million USDT transferred via DeBridge. In total, the long-term capital held is about 8.58 million USD with current unrealized profits reaching 620,000 USD.
The strategy of buying and then closing long positions within a short period allows this address to take advantage of strong price volatility to maximize profits.
"The clearing of the order book and the liquidation of all short positions demonstrates extremely accurate calculations and strong control by this party over the XPL leveraged market."
– @ai_9684xtpa, Hyperliquid trading analysis, 27/08/2024
Frequently Asked Questions
What is leveraged trading on Hyperliquid?
Hyperliquid provides a leveraged trading platform that helps investors buy and sell tokens by borrowing capital, but it also carries a high liquidation risk when the market fluctuates.
Why did the price of XPL suddenly surge in 2 minutes?
Due to an account address purchasing in large volumes, while forcing the short positions to liquidate, creating a demand effect that rapidly drives the price up.
Is the suspicious address related to Justin Sun really his?
No direct evidence has been verified, only indirect signs based on the history of ETH transfers five years ago.
How does the liquidation of short positions affect the market?
Liquidating large short positions will create sudden buying pressure, driving asset prices up rapidly in a short time.
What positions does this address hold after the trade?
Still holding about 8.58 million USD in long XPL positions with nearly 620,000 USD in unrealized profits.
Source: https://tintucbitcoin.com/mua-trieu-xpl-tren-hyperliquid-loi-lon/
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