Event Background Recent sharp price wicks for XPL on Hyperliquid and ETH on Lighter triggered mass liquidations, allowing some large players to profit tens of millions through market manipulation. These incidents highlight the critical impact of liquidation mechanisms and market depth on user position safety in perpetual contract trading. Liquidation Mechanisms ExplainedHyperliquid’s Market-Based Liquidation: When user equity falls below the Maintenance Margin (MM), the system injects liquida...

Event Background Recent sharp price wicks for XPL on Hyperliquid and ETH on Lighter triggered mass liquidations, allowing some large players to profit tens of millions through market manipulation. These incidents highlight the critical impact of liquidation mechanisms and market depth on user position safety in perpetual contract trading. Liquidation Mechanisms ExplainedHyperliquid’s Market-Based Liquidation: When user equity falls below the Maintenance Margin (MM), the system injects liquida...