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The futures market for Plasma’s unreleased $XPL token on decentralized exchange Hyperliquid experienced one of its most volatile trading episodes to date overnight, with more than $160 million in open interest wiped out in less than 10 minutes.
More than 80% of outstanding positions were liquidated, collapsing open interest from $160 million to just $30 million while clearing out the entire sell-side of the order book.
One trader wrote how they were trying to "hedge their $XPL position with 1x leverage," only for price to be "manipulated" resulting in the loss of $1.4 million.
The price of $XPL spiked to as high as $1.80, rising by more than 200% within two minutes to spur a series of massive liquidations.
One trader reportedly triggered the carnage by going long tens of millions of dollars in $XPL, effectively emptying the order book and forcing a cascade of auto-deleveraging.
The wallet netted $16 million in profits within a minute of unwinding part of the position, while still maintaining a long exposure of over 15 million $XPL worth $10 million.
Another trader, known on X as Techno_Revenant, closed a $20 million long via auto-deleveraging and netted nearly $25 million in gains. Others were less fortunate: "1x no leverage, account destroyed, only hedging 50% xpl allocation," X user StableDruid wrote.
The chaos comes just days before the official launch of Plasma’s $XPL token. Plasma, a stablecoin-focused blockchain backed by Founders Fund, Framework Ventures, and Bitfinex, recently filled a $250 million USDT yield program on Binance in under an hour.
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