HyperliquidX really needs to change its mechanism.

The annualized yield of HLP is indeed good, but this is based on the statistical foundation that most gamblers will eventually lose everything, making it possible for the counterpart to profit. However, now, some whales are specifically targeting small-cap meme shorts, forcing HLP to act as the counterpart and directly eroding the HLP liquidity pool. If this continues, HLP will eventually go bankrupt due to these whales.

This is also why major exchanges like Binance restrict large contract orders on small tokens; a market without a counterpart is uncontrollable, and prices can be completely manipulated and crash.

If all of HLP's money came from the founders, it wouldn't matter; they can lose their own money if they're foolish. But the problem is that many users' funds are involved, and such a mechanism flaw poses a significant risk to users.

Making contract trading transparent is indeed correct, but risk management cannot be absent. The depth of small-cap memes is already weak, and A9-level whales can easily dominate the market, especially with high leverage available; this operation is really self-destructive 😅$BNB