Hyperliquid Sees $130M Lost in XPL Futures as Plasma Token Launch Approaches

Hyperliquid XPL Futures See $130M Liquidated Ahead of Token Launch

The futures market for Plasma’s unreleased XPL token on decentralized exchange Hyperliquid experienced extreme volatility overnight, with open interest collapsing from $160 million to just $30 million in minutes. The sudden drop, triggered by a sharp price spike, led to widespread auto-deleveraging and wiped out more than 80% of outstanding positions.

The surge was reportedly caused by a single trader going long tens of millions of dollars in XPL, driving the token’s price up 200% within two minutes to $1.80. The aggressive move emptied the order book and forced a cascade of liquidations across the market.

Some traders suffered heavy losses. One user attempting to hedge their XPL position with 1x leverage lost $1.4 million, while another, StableDruid, reported losing an entire 50% XPL allocation without using leverage. Others profited from the chaos: one wallet netted $16 million in a minute while maintaining a $10 million long position, and trader Techno_Revenant closed a $20 million long for nearly $25 million in gains.

The event comes just days ahead of the official XPL token launch. Plasma, a stablecoin-focused blockchain backed by Founders Fund, Framework Ventures, and Bitfinex, recently filled a $250 million USDT yield program on Binance in under an hour, signaling strong investor interest ahead of the debut.