How did XPL attackers use Hyperliquid's rules to teach all DEXs a lesson worth tens of millions of dollars?
Written by: Carrot
This is not a hacker, this is a conspiracy
Two days ago, a textbook-level "precision sniping" was staged in Hyperliquid, and the protagonist was a token called $XPL. In the end, the attackers leveraged a massive short liquidation at a cost of less than $200,000, making a profit of over $10 million.
The most important thing is: this is not a hack and the attacker did not exploit any code vulnerabilities.
Instead, he taps into what DEXs are most proud of – complete transparency. It was a hunt in the sun that fully complied with the rules of the protocol. This incident serves as a mirror to reflect the structural weaknesses beneath the glamorous exterior of all current on-chain exchanges (DEXs).
Part I: Attack Trilogy: How Does the Hunt Happen?
To understand this attack, you need to know a core mechanism of perpetual contract...