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, Go to Source to See Full Article
Author: Oluwapelumi Adejumo