XPL tokens returned to $0.69, with a premium on Hyperliquid

The XPL boom on Hyperliquid was finally connected to one whale’s wallets, a user known as Techno Revenant. XPL’s recent rally and crash were not caused by TRON’s Justin Sun. 

Plasma (XPL) continues to be a highly active market on Hyperliquid, with a 20% to 30% price premium. The pre-launch token market is highly affected by a single whale with combined long positions. The whale was identified as user Techno Revenant. 

Additional research showed Justin Sun was most probably not involved with XPL’s price moves, as Cryptopolitan previously reported. 

On Hyperliquid, the presence of a large-scale whale with multiple positions also means shorting XPL is extremely risky and may lead to liquidations. 

XPL whale opened several long positions

On-chain Hyperliquid data showed Techno Revenant opened several positions with an estimated notional value of $31.1M. The whale also has $26.5M USDC deposited on the platform, which are not utilized. 

Long positions on Hyperliquid are increasing, with new whale wallets created in the past few hours. Not all new wallets are linked to Techno Revenant, who is using a dispersed strategy and gradually increasing the positions. 

Techno Revenant also does not use leverage on the longs. One of the current leading positions has an unrealized profit of $1.4M. The trader has been acquiring the positions relatively slowly, avoiding new rapid price swings. 

Trader Techno Revenant admitted longing XPL aggressively was not malicious

The rapid price action of XPL recalled previous cases of highly experienced whales making use of Hyperliquid’s niche markets to profit off less liquid tokens. In this case, Techno Revenant presented his case as a matter of inexperience and one mistaken order with a higher than intended amount. 

In the past few days, Techno Revenant has been building positions gradually, making the mistake of one order by a magnitude of 10X. The trader’s history showed he had been opening longs manually, typing in similar sums. 

One of the orders, after hours of trading, was placed at 444,444 USDC, instead of 44,444 USDC, explained as fat-fingering due to fatigue by Techno Revenant. The trader also mentioned he was not aware of the intricacies of Hyperliquid, as some of the positions were auto-deleveraged instead of liquidated. This meant Techno Revenant automatically took profit, but because of the shallow liquidity, he essentially drained 70% of available funds, while causing short liquidations for other traders. 

Techno Revenant also admitted he wanted to accumulate XPL before the token launch, and used Hyperliquid since there was no official presale. However, pre-launch markets remain unreliable. The trader’s actions led to $159M in liquidations for XPL positions within hours. Even with erratic actions and partial understanding of Hyperliquid, Techno Revenant managed to lock in a total of $38M, while retaining some of the long positions. 

The recent trading action, however, expanded the market for XPL and invited more whales. A total of 17 large-scale positions are held in the past day, up from just nine positions a few days ago. This does not account for smaller wallets with a more cautious or distributed approach. 

XPL settled at $0.69, still posing risk for short liquidations. Currently, only four of the whale positions are short, with the largest one carrying $1.92M in unrealized losses.

The smartest crypto minds already read our newsletter. Want in? Join them.