Hyperliquid faces whale manipulation claims as HYPE reaches new all-time high

Decentralized exchange Hyperliquid is under scrutiny after a sharp rally in its HYPE token coincided with whale-driven manipulation claims on its platform.

On Aug. 27, analytics firm SpotOnChain reported that a cluster of large wallets pushed XPL’s price up by 200% to $1.80 before it quickly retraced. The sudden move transferred millions between traders.

According to the firm, the main orchestrator of the manipulation gained more than $15 million, while three others booked profits ranging from $9 million to $13 million. By contrast, wallets caught on the wrong side of the swing lost over $6.5 million combined.

Another blockchain platform, Lookonchain, reported that the frenzy forced whales shorting XPL to inject liquidity to protect their positions. It noted that one trader deposited $44 million USDC, while another moved $29 million USDC into the protocol to stave off liquidation.

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