Sudden XPL Plunge Causes Hyperliquid HLP Vault to Lose Approximately $556,000; 16 Associated Wallets Established Large Long Positions in Advance

on November 1, on-chain analyst Naeven tracked a sudden crash in XPL, which caused the Hyperliquid Liquidity Provider Vault (HLP) to incur approximately $556,000 in realized losses.

Data shows that since October 29, 16 wallets funded through centralized exchanges have been continuously accumulating long positions in XPL. Prior to the crash, these wallets collectively held approximately 269 million XPL tokens, representing a nominal value of roughly $23 million. Of these, funds for 14 wallets were transferred via Binance two months ago.

Between 12:24 and 12:31 Beijing Time today, 12 of the related wallets withdrew approximately 2.02 million USDC prior to the crash to reduce position margins. Shortly after, around 12:32, the XPL price dropped sharply from $0.086431 to $0.069429, representing a decline of approximately 19.7%.

The mass liquidations forced the HLP vault to passively absorb approximately 160.39 million XPL long positions, valued at around $12.18 million, with an average entry price of $0.07592. HLP later closed out these positions at approximately $0.0725, resulting in a realized loss of about $556,000.