Larpy Coperstein

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ok, so with the help of @lukecannon727 (his tweet below) it seems like what happened is 1) someone hacked a whale's binance API key (trading only, no withdrawal permissions) 2) bitget funded accounts (presumably the hacker) deposited $1.5M to hyperliquid and aster to long $10M+ XPL I noticed a large XPL long TWAP on HL at ~2:30pm UTC yesterday that had $1M left to go with 1h left, which began at around the same time XPL started sending, and was abruptly cancelled (probably related) 3) as XPL mooned, the hacker used this compromised whale's binance API to place a $50M bid at $0.147 to set a floor and pump it further to ~$0.165 (dubious speculation) 4) these bitget wallets then withdrew $3M in uPnL on HL 5) as the price dropped, their now under collateralised longs got liquidated, causing HLP to take a $600k loss and triggering ADLs amazingly, there weren't enough profitable shorts, so even underwater shorts like mine got ADL'd 6) the binance whale's $50M order got filled on the way down, probably by the same hacker so that they could profit on the way down too (dubious speculation) 7) the binance whale is left with the low lev $50M XPL long, which is still open if I understand correctly, this is not necessarily a jellyjelly-esque attack on HLP because withdrawing their uPnL and letting their margin get liquidated was probably a strictly more profitable option than closing their long and TPing that way the buy side for XPL on HL currently has 3.4M USDC depth down to 1c; on a $10M position, there was most probably not enough liquidity on the book to even exit, even if you accepted massive slippage therefore, withdrawing the $3M uPnL at the top at 0 price impact, then losing your $1.5M margin to liquidation, using the liquidation cascade to fill your short on binance at $0.147, which is immediately in profit as price gaps down, is not only strictly the most profitable option, but the only choice for shrimps on liquid books, the withdrawal route is always worse than just closing your position because you forfeit your collateral, but in the case where your position is so large that there isn't enough liquidity on the book to absorb it, closing would be worse because you would still effectively liquidate yourself, but not before eating price impact $3M PnL at 0 slippage - $1.5M collateral (+ maybe another $10M on a binance short) = $1.5M+ profit the risk of creating such an unnatural situation is why people are luke is calling for HL to reduce the max leverage allowed on coins after their mcap has dropped significantly (XPL used to be over $15B FDV), as required.