USDC Wallets Go Long on XPL, Impact Observed
- USDC deposits on Hyperliquid affect XPL liquidity.
- Potential entity controls relevant wallets.
- Price premiums indicate market fragmentation.
Three wallet addresses deposited 7.49 million USDC to Hyperliquid, taking long positions on XPL with leverage, raising questions about possible linked strategy and ownership.
The activity highlights XPL’s vulnerability to price manipulation, affecting liquidity and resulting in significant market volatility across trading platforms.
Three wallet addresses collectively deposited 7.49 million USDC into Hyperliquid. These wallets likely belong to a single entity and engaged in long positions on XPL at 1x leverage. This action preceded further wallet accumulation within 21–23 hours.
The wallets involved are potentially controlled by the same unidentified entity, as seen in Onchain Lens monitoring. There are no official statements from Hyperliquid or linked individuals addressing these moves.
The activity led to a noticeable rise in trading volumes and XPL’s market volatility. XPL prices briefly traded at a 22% premium over Binance, signifying liquidity fragmentation across exchanges. Ai 姨, a Web3 Content Creator, commented on Twitter:
“XPL on Hyperliquid briefly touched $0.8119 and later traded near $0.7745 while Binance perpetuals quoted $0.6354. This implies an estimated 21.9% cross-venue premium…”
The incident resulted in unrealized profits of $2.553 million for a particular hedge-sniping wallet. Observers see this as evidence of manipulation vulnerabilities in decentralized exchanges.
The historical context of similar events demonstrates a pattern of significant impacts on XPL’s market. These episodes often exploit the asset’s thin liquidity, causing swift short squeezes and price distortions.
Regulatory responses might follow, as analytics firms highlight the need for systemic reforms. Improved risk controls like liquidity incentives and circuit breakers are advised to stabilize decentralized markets.
