How a Sleepless Trader Accidentally Triggered $38 Million Windfall on Hyperliquid's XPL

According to recent reports on August 29th, a trader known for market manipulation tactics orchestrated what appeared to be a calculated move but turned into an extraordinary profit scenario worth $38 million in mere minutes.

The Position Accumulation Phase

Following XPL’s debut on Hyperliquid, this trader executed a methodical two-day accumulation strategy. The approach involved systematic long position building through modest $44,000 increments, eventually amassing approximately $30 million in bullish exposure. The measured buying pattern was designed to avoid triggering massive price movements or attracting unwanted attention from other market participants.

The Critical Mistake

On the morning of August 27, the final stage of position establishment was underway. With fatigue setting in after prolonged market monitoring, the trader intended to add the remaining $5 million at the established $44,000 per order rate. However, severe sleep deprivation led to a catastrophic error: the order execution speed increased tenfold, with individual order sizes ballooning from $44,000 to $444,000.

Market Cascade

This dramatic execution mishap exposed a critical vulnerability in Hyperliquid’s order book depth. The suddenly massive buy orders launched XPL into a sharp upward trajectory, creating a liquidation cascade that forced thousands of hedging positions to close simultaneously. The total liquidation volume exceeded $159 million, sending shockwaves through the ecosystem.

The Unexpected Resolution

Jolted awake by the market chaos and initially convinced of imminent losses, the trader rushed to close positions in panic. Yet upon reviewing the account status, a surprising discovery emerged: the long position had already triggered an automatic stop-loss mechanism for risk management, protecting the portfolio from further downside. The final calculation revealed a stunning $38 million profit despite what had appeared to be a disaster in the making.

Current XPL Trading Data: The token currently trades at $0.14, as of December 20, 2025, reflecting ongoing market conditions following this extraordinary event.