August 27, 2025
This morning, there were two incidents of malicious manipulation of contracts on Hypeliquid, with extreme price spikes in the recently popular tokens XPL and WLIF, causing many hedgers to have their margins liquidated, commonly known as a margin call. I also became one of the victims. According to on-chain data, the long positions made profits exceeding 40 million USD, almost all of which were the principal of the hedgers. Currently, Hypeliquid has not made any statements regarding these two malicious manipulation incidents. Mechanically speaking, Hypeliquid made it clear that the liquidation price is the market price, which is closely related to the latest transaction price. However, this mechanism has exposed its biggest drawback after being maliciously manipulated, which is the lack of price protection.
This incident again reminds us that although on-chain trading is convenient and transparent, it is also more susceptible to targeted attacks, akin to the dark forest principle. In comparison, Binance has implemented various restrictions on pre-market trading to prevent such liquidation events, such as limiting position sizes and opening prices. Another lesson, perhaps more personal, is that any operation must ensure proper risk and position isolation. The cryptocurrency market is still a highly manipulated and unregulated market where loopholes in mechanisms are exploited, and the losers are either the platforms or retail investors. While platforms can freeze accounts, retail investors who are exploited often have no recourse. Regarding behaviors like Hype, I can only say that those who engage in trading should be cautious, especially in pre-market trading, and should avoid it until after the mechanism is modified.
In terms of market conditions, the overall market has stabilized, especially Ethereum, which rebounded from the support level of 4200 USD, briefly touching 4600 USD again. From the perspective of volatility, there is a significant divergence in Ethereum's recent price, filled with a tug-of-war between bulls and bears. In my opinion, this behavior occurs before a major breakthrough; the short-term price surges and drops indicate that the main players hold a significant amount of spot assets. However, the risk point to watch in the short term is the strength of Bitcoin's support level. If the position at 110,000 breaks, it will definitely lead to further declines in the overall market. Regarding this market situation, I am quite confident about a subsequent breakthrough of 5000, and I hope Ethereum breaks through soon, as the market before a breakthrough is indeed more difficult than the bottom of a bear market.
I was liquidated for tens of thousands of dollars, feeling unhappy, so I will just write this for today.#ETH走势分析
