Hyperliquid Accused of Manipulation While HYPE Records New ATH
- Hyperliquid faces accusations of manipulation by whales
- HYPE Token Reaches All-Time High Above $51
- Volume surpasses Robinhood and challenges centralized exchanges
Hyperliquid, a decentralized exchange, is under intense scrutiny following allegations of market manipulation involving large wallets. The accusations emerged on the same day that HYPE, the platform's native token, reached an all-time high.
According to analytics firm SpotOnChain, a group of whales drove the price of the XPL pair up 200%, reaching $1,80, before quickly correcting. The maneuver reportedly generated millions among traders. The main perpetrator reportedly made over $15 million in profits, while three other traders accumulated gains between $9 million and $13 million. Investors on the other side recorded losses exceeding $6,5 million.
🚨💥 Whale manipulation on #Hyperliquid sent $XPL soaring 200% to $1.80 in minutes earlier today, marking one of the wildest short squeezes and wealth redistributions we've seen!
Here's the breakdown:
Manipulators' profits:
🔹 0xb9c (main orchestrator): +$15.11M
🔹 0xe41:… pic.twitter.com/KiWDybLJj9— Spot On Chain (@spotonchain) August 27, 2025
The Lookonchain platform highlighted that the movement forced traders in short positions to add liquidity to avoid liquidations. One address injected $44 million in USDC, while another transferred $29 million in USDC to support its position.
Despite the controversy, the HYPE token reached $51,05 on August 27, surpassing its previous record high of $48,55 in July. Although it has since fallen back to around $48,8, the asset still posted daily gains of 7,5% over the period.
Hyperliquid's growth isn't limited to its token performance. Data from DefiLlama shows that in July, the exchange processed $330,8 billion in combined volume between spot and perpetual contracts, surpassing Robinhood's $237,8 billion across all asset classes. This result represented a 39% advantage and marked the third consecutive month in which the DEX surpassed the North American giant.
According to Carlos, a researcher at Blockworks, Hyperliquid generated nearly $100 million in revenue in the last 30 days, outperforming several Layer 1 networks. He also noted that spot volumes for Bitcoin, Ethereum, and Solana rivaled or even surpassed those of traditional exchanges like Bitstamp and Kraken, while the platform's derivatives now represent nearly 14% of Binance's futures market, up from a 2% share last year.
1/ Either HYPE is still cheap, or most L1s are overvalued.
Hyperliquid is the leading chain by revenue, generating $28M weekly over the last two weeks and nearly $100M in the past 30 days.
Furthermore, the data shows Hyperliquid is capturing significant market share from CEXs. 🧵 pic.twitter.com/6CDVVwYTA3
— Carlos 🟪 (@0xcarlosg) August 26, 2025
"Hyperliquid will continue to take market share from CEXs," Carlos said, reinforcing the view that the decentralized platform is consolidating its position against centralized exchanges.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dovish Signals Boost Markets: Asia-Pacific Stocks Rebound, South Korea Shares Jump Over 1% Ending Five-Day Slide, Taiyo Yuden Surges 7%
On Wednesday, the MSCI Asia-Pacific Index rose by 0.2%, making a slight rebound from the low point reached on Tuesday, the lowest since August. South Korea's Composite Index briefly rose by over 2%. SK Hynix and Samsung Electronics both surged more than 3% during trading, then fell back. The Nikkei 225 expanded its gains to 0.53%. MLCC giant Taiyo Yuden led the AI hardware sector, while Fujikura rose nearly 4%. The yield on 10-year US Treasury futures remained at 5.21%, up 0.5 basis points from Tuesday.
Apple (AAPL.US) is the “ultimate answer” for AI investments? Amid a semiconductor crash, it hits $5 trillion again; foldable iPhone and AI home devices ignite growth imagination
While the Philadelphia Semiconductor Index has fallen for five consecutive days with a cumulative drawdown of over 8%, Apple hit a historic intraday high of $348.15 on October 13, with its market capitalization surpassing $5 trillion again; it closed at $341.27, with a market value of approximately $4.98 trillion.
As tech stocks plummet, Goldman Sachs issued a bullish report on US stocks, but after reading it, people became even more worried...
Goldman Sachs strategist Tony Pasquariello released a bullish report, stating that market breadth is "not as bad as reported." However, the report references the internet bubble twice for comparison. Behind the tactical bullishness lie multiple concerns such as slowing profits, a surge in stock supply, and quarterly crowded positions among the "Magnificent Seven."
Apple (AAPL.US) launches wall-mounted hub HomeView to enter the smart home market; analysts: may generate new income for the services segment
Apple launches a wall-mounted hub to enter the smart home market. Analysts say it may bring new revenue to the services segment, and a paid Siri AI is on the horizon.
Crypto prices
More
