The recent #XPL incident at Hyperliquid has once again exposed the inherent risks of decentralized trading platforms. Its main attraction is the lack of KYC requirements and the ability to handle large funds, while decentralization is a secondary concern—especially since it is not truly decentralized at this point. The reason risks occur here, which are rarely seen on CEX, is simple: there’s no escape.

At 5:35 AM this morning, the perpetrator deposited 5 million USDC into #Hyperliquid , then went long with positions of 500,000 to 5 million USD, pushing the XPL price up to 1.8 USD, while Binance only reached a maximum of 0.6176 during the same period.

The partner positions on Hyperliquid were liquidated at a high point for 2 million USD, and the perpetrator used a million of #XPL to manipulate the entire market, instantly profiting 10 million USD, and then began to withdraw funds. This time, the loss was real money, not the unrealized profits and losses of the HLP treasury.

The problem is that Hyperliquid has yet to take any action regarding this. If it were Binance, a similar situation would have triggered risk control limits long ago, with order placements and holdings being restricted. The lack of risk control in #DEX has led to the complete destruction of the hedging forces, making the XPL leveraged liquidation an almost inevitable event—not a high probability, but a 100% probability, just a matter of who it would happen to.

Gambling lightly can be entertaining, but heavy gambling harms oneself. Hedging is not foolproof, and every hedging attempt comes with the risk of being targeted.

Market behavior is so cruel; complaining or seeking rights during losses is futile. Admitting defeat and accepting risks is the way to survive.

If Hyperliquid wants to maintain its position as the top DEX, it must provide users with a clear explanation; otherwise, competitors will quickly take its place.