A surge in the Hyperliquid pre-launch token, XPL, led to over $17 million in liquidations primarily affecting short traders between August 27-28, 2025. This event was driven by four large whales with significant holdings that capitalized on the price jump, earning an estimated $46 million in profits. The surge caught the attention of DeFi participants and highlighted the volatile nature of pre-launch token markets. Hyperliquid’s XPL token saw a dramatic 2.5x spike over two days, leading to these liquidations. The team behind the protocol assured users that systems functioned as intended, with risk controls in place to limit unnecessary losses from sudden market volatility. Market speculation surrounding this event led to an increase in trading activity for Hyperliquid’s governance token HYPE.