jakiro
Hyperliquid’s liquidity can always surprise or shock people.
On August 27, just when Hyperliquid BTC spot trading volume was second only to Binance, and last month’s trading volume surpassed Robinhood. The news was announced, the super giant whale address related to Sun Cuo placed an order to “attack” the $XPL pre-market contract market, causing tens of millions of dollars in user losses.
Unlike mainstream trading markets such as BTC/ETH, Hyperliquid’s pre-market contract market trading volume is already small, and giant whales can use trading rules without permission, which ultimately leads to a tragedy on earth.
If it were CEXs such as Binance, the giant whale would have been manually banned, and even the possibility of sniping was slim. Afterwards, the Hyperliquid team’s reply on Discord was to have a deep understanding, learn lessons, resolutely improve, and not compensate for it for the time being.
Image description: HL team responded
Image source: @hyperliquidx
Recalling the security incidents and handling results of HL again:
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In November 2024, BitMEX founder Arthur Hayes and others accused Hyperliquid architecture centralization;
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At the beginning of 2025, the 50x giant whale exploded the HLP vault incident, and the HL team adjusted the leverage multiples of multiple currencies afterwards;
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On March 26, 2025, facing $JELLYJELLY malicious sniping, the HL team went directly to pull out the network cable to protect themselves.
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On August 27, 2025, Giant Whale Sniper attacked the pre-market contract market $XPL, the official stated that it was at its own risk.
It can be found that the HL team takes completely different measures in the face of different security incidents. If HL’s own vault or interests are not involved, it is decentralized governance. If the agreement itself is really endangered, it will directly use the super-management authority.
I have no intention of making a moral evaluation on this matter. I can only say that any place for concentrated trading liquidity will inevitably face “accidents” that protect retail investors or giant whale liquidity. Nothing can be missed from the opaque Binance listing standards to the Robinhood’s retail investors fighting Wall Street.
Space-time is a circle, and fluidity is the source of gravity
In 2022, the Perp DEX trend, after the FTX collapsed, the perpetual contract market appeared blank, and Binance followed the listing thinking and encountered PumpFun’s reshaping of its pricing strategy.
Hyperliquid is not special. It imitates the strategy of $BNB = Binance main site + BNB Chain, migrates all liquidity to the no KYC chain, Binance regulatory arbitrage grows rapidly, and HL without access arbitrage attracts retail investors.
Back in 2022, everything in the currency circle originated from the FTX collapse, Backpack took away Solana’s orthodoxy, Polymarket took away political event predictions, Perp DEX is still enduring the rule of GMX and dYdX, and the intrusion of Bybit and Bitget.
There was a short period of gaps in the market, and Binance was in danger of investigation. At that time, Biden was in office. The Democratic president did not like cryptocurrency. All SBFs that donated tens of millions of dollars to Biden had to go in. Gary was in the Dasha currency circle as SEC chairman, and Jump Trading was about to stop.
Ten thousand horses are silenced, and there is opportunity in danger.
Binance was censored, FTX collapsed, BitMEX was old, OK/Bybit/Bitget were fighting off the chain. At that time, CEX did not deny the on-chain migration trend, but the way to choose was wallet.
Hyperliquid chose to embrace CLOBs (Central Limit Order Books), using off-chain matchmaking + on-chain settlement, plus the LP Token mechanism of stealing GMX, Incentive Game was officially launched.
However, this mechanism, in 2023-2024, is not even new. At the critical moment, Pump Fun broke through Binance’s pricing system, and the Meme frenzy made HL liquidity truly earn the first batch of loyal users.
Before Pump Fun, NFT or Meme local dogs existed, and even BNB Chain was the main battlefield in 2021, so my cousin didn’t understand that Meme was purely marketing, but Pump Fun chose internal and external market mechanisms and Solana ecosystem.
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The internal and external market mechanism gives small-batch funds the opportunity to experiment with any possibility on a large scale;
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The Solana ecosystem allows Meme trading to achieve its rapid growth and death characteristics to the extreme.
All of this has caused VC financing – project accumulation – Binance exit ->The rhythm of empowering BNB is interrupted. The collapse of the high-valuation system is a precursor to Binance’s liquidity crisis. It can be said that BNB is Binance’s debt, and Binance Alpha is full of passive defense helplessness.
The Meme boom is the first time HL has verified itself, and liquidity is available everywhere. Only after small batches and small currencies are tested will large funds and mainstream currencies arrive.In terms of publicity and distribution, it is all reverse marketing. Only when there are big investors, retail investors dare to enter the market. But in fact, without the losses of retail investors, there will never be profits from MM (market maker), giant whale and agreements..
Hyperliquid cannot have no external capital injection. It operates super liquidity entirely with its own funds, but the absence of VC does not conflict with this. In November 2024, Paradigm had entered the $HYPE system. According to @mlmabc, the purchase volume may be 16 million.
Image description: paradigm Buy $HYPE
Image source: @matthuan
VCs can buy directly, which is difficult to be considered a traditional investment model. Similarly, MMs (market makers) may also participate in this way, but logically, they are all airdrops and buying like ordinary retail investors.
From a narrative logic, the additional issuance and sale of tokens of the project is a typical game theory crisis. The project party, multiple VCs and exchanges do not trust each other. Although selling immediately after unlocking will lose future benefits, it will retain existing benefits. Therefore, all stakeholders choose to sell instantly, and only the world where the exchange and the project party are injured appears.
Hyperliquid airdrops $HYPE by retaining control of the project, and trades spot $HYPE in the way it is the main exchange. Only by controlling the double plate can stabilize the initial momentum of the flywheel. In mid-2025, Bybit will only Listing $HYPE in spot. It is highly likely that it will directly buy and increase trading pairs. It is unlikely that HL will drive the listing of coins.
HL is not mysterious. When Pump Fun is launched, the wealth creation effect is stronger than Binance. Binance has won another game today. Such a game will last for a long time. Binance and OK can put aside their past grudges and join forces to snipe Hyperliquid.
The mall is like a battlefield, with long events and few match points.
Retail investors trade meme coins, big investors flock to HL
In the era when retail investors refuse to trade, what are the big players making?
Meme went bankrupt, Pump Fun, Berachain and Story Protocol, you can guess who has the most income from the agreement, and Pump Fun, which retail investors are leaving the market, and Berachain, a native design of DeFi, has become a roadside player.
However, retail investors will no longer touch altcoins. The current rise is the spillover of liquidity in US stocks. Unfortunately, DAT has started selling coins. The strategy (MSTR) coin stocks and bond flywheels are good-looking but not easy to learn. Even ETH, their tolerance to rise is far less than BTC.
In an era when retail investors refuse to trade, everyone is eyeing big investors and institutions. Their idea is very interesting. They believe that as long as big investors are counterparts to each other, they can earn agency fees and handling fees. This is no longer a laziness in thinking, but an insult to Hyperliquid.
Liquid is always the most daily infrastructure in the crypto industry, and Hyperliquid succeeds in establishing direct connections with retail investors.
No KYC users of 500,000 are big players and giant whales, so cryptocurrencies have long replaced the existing financial system. Trump’s $5 million gold card cannot sell so many. Similar to USDT, no access is tempting to funds. You can say that there are many black and gray industry practitioners, but this is by no means a financial miracle that a few people can create.
In this attack, Twitter (X) told me that they encountered real users, and in the pre-market contract market with less transaction volume, it proved Hyperliquid’s appeal and user base. The only problem is that HL failed this time and started to pour liquidity into its own governance system.
11 individuals generate annual revenue of US$1.167 billion, per capita profit of US$106 million, and then Tether has US$93 million per capita, and then only fans have US$37.6 million, the scale effect of the Internet, combined with the most primitive desires of mankind, create an extremely brilliant underground and on-chain world between Asia, Africa and Latin America and the first world characteristic industries.
If you think Hyperliquid is a giant whale fight, is Tether a big swap?Or are Onlyfans all big shots going into the business?
In the era when retail investors refuse to trade counterfeits and Memes, high leverage of BTC and ETH is one of the few “opportunities” that has a fatal temptation for everyone. Of course, being short-squeezed is also a fatal loss.
People cannot cheat on their own path of success.
Binance will only continuously optimize the logic around the currency listing until overfitting falls into a dead loop;
CEX will only increase rebates around liquidity until it breaks through its meager profit rate;
CLOB DEX will only learn to become Binance, and after issuing tokens, it will become a GMX imitation disk.
It is rare to be a maverick pig, and there are many people who want to provide asset management services for large investors. If the maximum liquidity today is CEX, it can only be said that it is not suitable to participate in the next crypto market.
Retail investors come to the free market without permission, big investors earn the opportunity to exit liquidity, Paradigm earns $HYPE increase and holdings, and retail investors have the opportunity to make big profits with small amounts, provided that they do not touch small currency assets.
Everyone priced their destiny, and then All in Crypto is the eternal theme.
Conclusion
Artificial intervention is a traditional feature of Hyperliquid, and the entire Perp DEX track has a strong color of man-man rule.
It is not that HL airdrops and profit distribution are in place, nor that Jeff has created a better technical architecture, but that after the FTX collapse + Binance is under regulatory market gap, Hyperliquid’s competitors are actually limited, and Timing is always the best entrance to breaking the existing structure.
FTX collapsed ->Binance was tied up by regulation +Binance management was immersed in the idea of listing coins ->PumpFun breaks through Binance’s listing mechanism and pricing logic ->Perp DEX has become a blank market with huge market space ->Bybit is a beneficiary of existing thinking + Hyperliquid builds the $HYPE flywheel.
