Waking up early in the morning to see the extreme spike incident on @HyperliquidX with $WLFI and $XPL, where XPL surged from 0.6 to a maximum of 1.8, an increase of 3 times, while Hypeliqued's pre-market contracts are independently margined, allowing for 1-3 times leverage. This means that if one opened a short hedge without adding extra margin, they would all be liquidated. WLFI was slightly better, only increasing by 2 times.

On Hypeliquid, there are two prices: one is the oracle price, which uses an 8-hour moving average to calculate the funding rate. The other is the market price used for liquidation. Mechanically speaking, manipulators only need a small amount of funds to break through the order book, triggering a chain liquidation, making the cost of wrongdoing very low.

In contrast, Binance's pre-market trading has implemented some protective measures, such as using the price from the past 10 seconds for the market price, limits on price fluctuations, position limits, etc. It's still best to trade in a mature market. @币安Binance华语 , based on the recent issues seen on Hypeliquid, the potential risks of on-chain contracts far outweigh those of centralized exchanges. #PlasmaXPL