A price surge triggered by a 'fat finger' has created huge waves for the XPL token on the Hyperliquid platform! Trader Techno made a staggering $38 million profit in just 20 minutes, sparking heated discussions in the community:
Was this an accidental mistake or a carefully orchestrated market manipulation? Let's find out!
I. The High-Risk XPL Presale Market
XPL is the presale token for the Plasma blockchain project, traded on the Hyperliquid platform in the form of 'presale perpetual futures.' This high-leverage derivative market has low liquidity, high volatility, and lacks position limits or external price oracles, making prices susceptible to large order impacts.
II. Involved Trader: Techno_Revenant. Trader Techno gradually built a position of 54.4 million XPL, worth about $31-33 million, by placing buy orders of about $44,000 each over two days, betting on a price increase.
III. Event Timeline: From Mistake to Liquidation Storm
Accumulation and Initial Pump (21:00–21:36 UTC)
On August 26 at 21:00, the XPL price was about $0.58, showing an upward trend. Techno planned to add $5 million to his position, expecting the price to break $0.60. He originally intended to place a small order of $44,000 for a quick operation but accidentally ordered $4.44 million due to a 'fat finger' error (a mistake made while half-awake), buying 7.29 million XPL. Within one minute, the price surged from $0.587 to $0.65, a 10.8% increase. Suspension and Recovery (21:36–21:51)
Realizing the mistake, Techno paused for about 2.5 minutes, waiting for the price to pull back to levels at other exchanges (like Binance, around $0.60). He then resumed with a small order of $45,000, buying 783,000 XPL, spending $509,000, pushing the price to $0.6383, triggering short liquidations. Cascading Liquidation and Price Surge (21:51–23:51)
The buy order triggered a chain reaction: short positions were forcibly liquidated, and the price skyrocketed to $1.80 within 3-4 minutes, while spot prices on exchanges like Binance remained stable at $0.60. In two hours, 1,026 users were involved in 2,465 liquidations, with $159 million in positions (85% of total XPL holdings) wiped out. Techno's Exit and Windfall (21:53–21:55)
Amidst the market's wild fluctuations, Techno worried about price pullbacks or system failures. Starting from 21:53, he manually closed positions, selling 111,000 XPL at $1.1043, making a profit of $123,000. Subsequently, Hyperliquid's automatic deleveraging mechanism was triggered, partially closing his 6.14 million XPL (worth $69.5 million), netting a profit of $38 million within 20 minutes. Follow-up Operations
Techno diversified his remaining positions across nine accounts, slowly increasing his holdings through 24-hour TWAP orders. As of August 28, he held about $14 million in XPL, accounting for 24% of total holdings.
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The most dramatic scene is: our protagonist is doing contract perpetual operations for the fifth time!!
IV. Controversy Focus: Accident or Manipulation?
Techno's Explanation: In a deleted tweet, Techno stated that due to lack of sleep and FOMO (fear of missing out), he made an error and did not realize the order book's fragility, denying any intent to manipulate. Community Reaction: Analysts traced back through on-chain data, confirming Techno as the main character of the event.
Critics accuse it of exploiting Hyperliquid's design flaws (no external price reference) to create unnatural volatility, similar to the 'JellyJelly' exploit, questioning its legitimacy. Defenders argue that this is 'fair game' in a high-risk market, and the platform has warned about volatility.
Victim Voices: Delta-neutral funds like @monolith_fund suffered heavy losses due to unfair liquidations caused by price discrepancies.
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V. Platform Response and Lessons
Hyperliquid announced that it would integrate external exchange prices to prevent similar discrepancies. Previously, the platform refunded due to system issues, but this time no compensation was given, raising user concerns about trust in the platform.
VI. Summary: The Double-Edged Sword of Decentralized Markets
The 'fat finger' incident exposed the risks of decentralized perpetual futures markets: thin liquidity, high leverage, and lack of cross-exchange protection can lead to extreme consequences. Techno's $38 million windfall was either an unexpected stroke of luck or a carefully designed manipulation? The community remains divided, and perhaps only he knows the answer.
In the high-risk crypto market, opportunities and traps coexist. Do you think Techno's actions were an unintentional mistake or intentional? Feel free to leave a comment to discuss! Follow me for more updates on the crypto market! (Disclaimer: This article is for informational purposes only and does not constitute investment advice. The crypto market is highly risky, please operate with caution.)
