Decentralized exchange Hyperliquid is under scrutiny after a sharp rally in its HYPE token coincided with whale-driven manipulation claims on its platform.
On Aug. 27, analytics firm SpotOnChain reported that a cluster of large wallets pushed XPL’s price up by 200% to $1.80 before it quickly retraced. The sudden move transferred millions between traders.
According to the firm, the main orchestrator of the manipulation gained more than $15 million, while three others booked profits ranging from $9 million to $13 million. By contrast, wallets caught on the wrong side of the swing lost over $6.5 million combined.
Another blockchain platform, Lookonchain, reported that the frenzy forced whales shorting XPL to inject liquidity to protect their positions. It noted that one trader deposited $44 million USDC, while another moved $29 million USDC into the protocol to stave off liquidation.
HYPE’s new ATH
Despite the controversy, Hyperliquid’s HYPE token climbed to a record $51.05 on Aug. 27, a 10% increase in 24 hours, according to CryptoSlate data.
The milestone surpassed the asset’s previous July high of $48.55. Prices have since corrected to around $48.8, though the token still showed a 7.5% daily gain at press time.
The momentum reflects broader growth across Hyperliquid’s trading platform.
DefiLlama data revealed that in July, Hyperliquid processed $330.8 billion in combined spot and perpetual volume, surpassing Robinhood’s $237.8 billion across all asset classes. The gap represented a 39% lead for Hyperliquid, marking the third straight month it outpaced the US trading giant.
Industry observers suggest the growth trajectory could continue for the decentralized trading platform.
Blockworks researcher Carlos noted that Hyperliquid generated nearly $100 million in revenue over the past 30 days, outpacing several established Layer 1 networks.
According to him, Hyperliquid’s spot volumes for Bitcoin, ETH, and Solana matched or exceeded those of Bitstamp and Kraken this month.
At the same time, its derivatives activity rose to nearly 14% of Binance’s futures market, a jump from just 2% a year earlier.
Considering this, he posited that “Hyperliquid will continue to take market share away from CEXs.”
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