Investors earned 38 million USD on Hyperliquid thanks to the "kill short" Plasma (XPL).

On the morning of August 27, 2025, the crypto community was abuzz with news that a group of investors had executed a dramatic deal on the decentralized derivatives exchange Hyperliquid, earning a total profit of 38 million USD in just a few minutes thanks to a strategy that pushed the price of Plasma (XPL) up by over 200%, causing a liquidation of numerous short positions.

Developments of the case

According to on-chain data, a whale wallet deposited 16 million USDC onto Hyperliquid, then opened a large long position on XPL, causing the price of this coin to surge from 0.58 USD to 1.8 USD in a short period.

• This investor has partially taken profit, earning 15 million USD in profit while still maintaining a long position in XPL worth 8.1 million USD.
• Lookonchain detected two more wallets with similar actions, bringing the total profit from this morning's "short kill" to approximately 38 million USD.

Why could this price push happen?

The XPL futures contract on Hyperliquid meets all the conditions for a massive pump:

• Unique reference price: Only Hyperliquid lists the XPL futures contract, so there is no opposing price source.
• Thin liquidity: The order book is not thick, making it easy to manipulate with large capital.
• Many traders short to hedge: Initial investors in Plasma often open short futures to protect their positions before the official release date of XPL, leading to a potential squeeze.

Plasma (XPL) – The hottest project at this moment

Plasma is a specialized layer-1 blockchain for stablecoins, backed by Tether and recently raised 373 million USD in a public sale in July 2025. The project also collaborates with Binance to launch profit-generating products from USDT deposits.

• XPL has not been officially released yet but there are futures trading on Binance and Hyperliquid, causing many traders to look for ways to speculate on the price.

Impact on the market and Hyperliquid

This move not only caused many retail traders to be liquidated but also shows:

• Huge profit potential on Hyperliquid, a newly emerging DEX derive platform that has already achieved trading volume equivalent to 1/10 to 1/5 of major CEX exchanges.
• The DeFi ecosystem is becoming a "battleground" for whales with short/long killing strategies, creating significant volatility for newly listed coins.

Highlights:

• Total profit of the wallet group: 38 million USD
• XPL price increase: +200% in a few minutes
• Plasma backed by Tether has raised 373 million USD and partnered with Binance.
• Hyperliquid continues to demonstrate its appeal to professional traders