According to Mars Finance news, on August 27, Hyperliquid officially announced in its Discord channel that the XPL market experienced significant volatility today, with the marked price increasing by approximately 2.5 times within a few minutes. During this period, the Hyperliquid blockchain continued to operate normally as designed, with no technical issues occurring: first, liquidations were executed based on the order book, followed by the activation of the automatic deleveraging (ADL) mechanism according to the public protocol. Hyperp adopts a fully isolated margin system, ensuring that all users' profits and losses are segregated from other asset positions. This liquidation and ADL only affected XPL positions, and the protocol did not incur any bad debts. The pre-listing market itself is inherently unpredictable. The robust marked price formula used by Hyperp effectively prevents sudden surges, requiring that the order book price remains elevated for several minutes before triggering liquidation. Hyperliquid is a permissionless multi-market protocol, with each market having unique risk characteristics. Users are strongly encouraged to understand the operational mechanisms of markets like Hyperp by reading documentation and to implement appropriate risk management before trading. All Hyperp products contain risk warnings, reminding users to be aware of low liquidity, high volatility, and increased liquidation risks. Lastly, some users have expressed a desire to short using high collateral positions. After the next network upgrade, the marked price for Hyperp will be capped within 10 times the 8-hour marked price EMA. Although this condition has never come close to being triggered, this measure provides a mathematical boundary for the liquidation price of over-collateralized short positions. The 8-hour EMA has been published as the oracle price for Hyperp both on-chain and via API. It should be noted that this upgrade will not change any liquidations or ADL results from today, but is intended to encourage liquidity provision during periods of volatility. Different suggestions proposed by users come with their own risk vectors, and the best solution is to introduce more liquidity to these markets to mitigate the impact of volatility.