Hyperliquid Crypto Prices Plummet Amidst Whale Activity and Market Volatility

Crypto exchange Hyperliquid experienced price drops for XPL and WLFI tokens on August 27, 2025, due to a combination of whale trading activity and market volatility. The price declines narrowed the premiums these tokens offered compared to other platforms, disrupting arbitrage strategies and impacting retail traders heavily impacted by sudden liquidations. This event was triggered by a significant increase in short positions from large investors (whales) on Hyperliquid’s platform, leading to rapid price movements. ]