Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
DeFi’s Structural Vulnerabilities Revealed by $60 Million XPL Turmoil

DeFi’s Structural Vulnerabilities Revealed by $60 Million XPL Turmoil

Bitget-RWA2025/09/25 15:26
By:Coin World

- Hyperliquid's whale wallet 0xb9c earned $614K in unrealized XPL profits after a 200% price surge orchestrated by four manipulators, generating $47.5M combined gains. - The manipulation exploited isolated oracles and no position limits, triggering $60M+ losses and exposing Hyperliquid's lack of circuit breakers or external price references. - Post-incident safeguards like 10x mark price caps and external data integration created arbitrage opportunities, highlighting systemic risks in DeFi's growth-over-se

DeFi’s Structural Vulnerabilities Revealed by $60 Million XPL Turmoil image 0

The whale wallet 0xb9c currently holds the largest XPL long position on Hyperliquid, amassing an unrealized gain of $614,000 as of August 27, 2025. This follows a coordinated price manipulation event that caused the token’s value to soar by 200% to $1.80 in a matter of minutes. Four major whale wallets orchestrated this rapid price increase, collectively earning $47.5 million, with 0xb9c alone pocketing over $15 million as the main orchestrator. By exploiting Hyperliquid’s isolated oracle mechanism and absence of position caps, the manipulators triggered a wave of forced liquidations, resulting in losses exceeding $60 million for other participants.

XPL, the native asset of the Plasma blockchain, experienced this price manipulation through leveraged trades that wiped out the order book and forced shorts to close. Hyperliquid users, including one who suffered a $4.59 million loss, criticized the platform for lacking essential protections like circuit breakers and external price feeds, which are common on centralized exchanges. In response, Hyperliquid implemented a 10x ceiling on mark prices based on an 8-hour moving average and began using external market data to prevent similar incidents. However, these changes led to arbitrage opportunities, as XPL’s price began to diverge between platforms such as Binance and Hyperliquid.

This episode highlights the inherent risks in DeFi platforms that prioritize rapid expansion over robust risk controls. By listing tokens with limited liquidity like XPL, Hyperliquid exposed itself to market manipulation by large holders. Experts pointed out that, unlike centralized exchanges that use open interest limits and external price oracles to stabilize trading, Hyperliquid lacked governance structures to counteract manipulation. The situation has reignited discussions about the necessity of position limits, transparent oracle systems, and regulatory frameworks within DeFi markets.

The XPL incident is not unique; similar cases, such as the $13.5 million JELLY token exploit in March 2025, demonstrate recurring vulnerabilities in leveraged DeFi markets. Both traders and analysts stress the importance of recognizing the distinct risks present in pre-launch perpetual futures, where low liquidity and fast trade execution can intensify price swings. Although Hyperliquid’s 2023 debut established it as a prominent on-chain futures platform, recent developments underscore the ongoing struggle to balance innovation with security in decentralized finance.

Following the manipulation, XPL’s price has dropped back to $0.51, reflecting a correction after the surge. Nevertheless, this event has brought renewed focus to the need for industry-wide reforms, such as enhanced risk management systems and standardized measures to deter manipulation. As DeFi continues to grow, maintaining equilibrium between scalability and security will remain a central concern for developers, regulators, and market participants.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Google’s AI-Powered Payments Protocol Transforms the Landscape of Automated Online Transactions

- Google launches open-source AI payments protocol with Coinbase and 60+ partners to enable secure, interoperable transactions between AI agents and traditional systems. - Protocol integrates stablecoins (now $289B in circulation) and legacy payment rails, aligning with U.S. GENIUS Act and EU MiCA regulatory frameworks for crypto oversight. - Designed for AI autonomy, it enables agents to handle mortgage negotiations, automated shopping, and real-time cross-industry transactions while ensuring user-intent

Bitget-RWA2025/09/25 22:16
Google’s AI-Powered Payments Protocol Transforms the Landscape of Automated Online Transactions

RedotPay Secures $47 Million to Accelerate Stablecoin Growth Across Developing Economies

- RedotPay, a Hong Kong-based fintech startup, raised $47M in a funding round led by Coinbase Ventures, valuing it over $1B as a unicorn. - The company offers stablecoin-powered payment solutions, serving 5M+ users across 100 markets and processing $10B in annualized volume. - Funds will accelerate expansion into emerging markets, enhance compliance, and deepen partnerships, with CEO Michael Gao highlighting investor confidence. - Competitors like Bastion and Fnality also secured significant 2025 funding,

Bitget-RWA2025/09/25 22:16
RedotPay Secures $47 Million to Accelerate Stablecoin Growth Across Developing Economies

SEC Opens the Door to ETFs, Expanding Ethereum Availability for Everyday Investors

- SEC’s new crypto ETF rules speed up approvals, enabling REX-Osprey to launch ETH-focused products. - Ethereum’s DeFi utility and upgrades drive demand for structured exposure via ETFs, despite volatility risks. - Trump-era crypto-friendly policies and streamlined frameworks may boost ETF adoption, but smaller tokens face liquidity challenges. - Critics warn ETFs risk amplifying volatility, yet industry predicts a floodgate of crypto ETFs by late 2025.

Bitget-RWA2025/09/25 22:04
SEC Opens the Door to ETFs, Expanding Ethereum Availability for Everyday Investors

SEC's Policy Change Paves the Way for a Surge in Crypto ETFs

- The SEC approved generic listing standards for spot crypto ETPs, slashing approval timelines from 240 to 75 days and triggering a surge in ETF filings. - The framework applies to assets traded on ISG members or with CFTC-regulated futures, enabling broader access to large-cap altcoins like Solana and XRP. - While firms like Grayscale and Bitwise filed multi-coin ETF proposals, experts warn success depends on underlying crypto fundamentals and market narratives. - Regulatory alignment with Trump-era pro-c

Bitget-RWA2025/09/25 22:04
SEC's Policy Change Paves the Way for a Surge in Crypto ETFs