Hyperliquid’s HLP Vault Records About $556,000 Loss After XPL Drop

Sixteen wallets began building long positions in XPL on Oct. 29, and a Nov. 1 price plunge left Hyperliquid’s HLP vault with a loss of about $556,000.

Together, the wallets accumulated about 269 million XPL, representing roughly $23 million in notional exposure. Funds for 14 wallets had passed through Binance about two months earlier. Before the decline, 12 wallets withdrew about 2.02 million USDC, reducing their margin exposure.

XPL dropped from $0.086431 to $0.069429, triggering a series of liquidations of long positions. HLP then took on about 160.39 million XPL in long exposure, with an average entry price of $0.07592 and a notional value of roughly $12.18 million. It closed the position at $0.0725, realizing a loss of about $556,000.

The Hyperliquidity Provider, or HLP, is Hyperliquid’s community-owned vault that supplies liquidity and performs liquidations. Liquidations automatically close leveraged positions when traders no longer meet margin requirements. In this case, the process left the vault holding the XPL long position.