Cappu

[trade.xyz @tradexyz]

S&P Dow Jones Indices and trade[XYZ] have joined forces to launch the first official S&P 500 perpetual contract, available exclusively on Hyperliquid.

For 69 years, the S&P 500 has been a defining reference point for global finance. Until now, access to that benchmark has been shaped by market hours, intermediaries, and geography. Today, that changes.

The S&P 500 perp is now available 24/7/365, anchored by the official index data required for deep liquidity and institutional confidence at scale. 

SPDJI helped define modern indexing. They are stewards of an iconic benchmark, the standard against which portfolios across the globe are measured. We are honored to bring that legacy on-chain.

Trade[XYZ] is bringing the world's most iconic assets towards a future of global, continuous markets — a future powered by Hyperliquid.

[zoomer @zoomerfied]

[ ZOOMER ]

SONNET BIOTHERAPEUTICS, PARADIGM LED HYPERLIQUID DAT, APPROVES MERGER TO GO LIVE: BBG

[Kinetiq @Kinetiq_xyz]

$KNTQ, the governance token of Kinetiq, is now live on Hyperliquid.

[Kinetiq @Kinetiq_xyz]

Since the start, Kinetiq was solely designed to elevate the Hyperliquid ecosystem by ensuring that the native network token, HYPE, becomes the perfect money lego, and we'll stop at nothing to achieve that. Kinetiq's success is synonymous with Hyperliquid's and aims only to be a critical part of the ecosystem where every user and builder can freely use and build atop of the most liquid and utilized staking protocol, and beyond.

The kPoints program ran for 13 weeks, distributing 800,000 kPoints per week from July 15th, to October 14th. Throughout this period, several addresses were identified in collaboration with industry-leading research partners that are believed to belong to sybils, and/or malicious entities engaging in harmful behavior to the protocol.

This has resulted in redistributing flagged kPoints, equating to a larger share to real users of the Kinetiq protocol.

Further, an additional 1,600,000 kPoints have been distributed for activity from October 14th to November 12th –– bringing the final sum of kPoints to 12,000,000.

Any new addresses that have qualified for kPoints throughout this period may now sign the @KinetiqFND Terms of Use before November 21st, 2025 at 20:00 UTC, in order to participate in the KNTQ genesis event.

[Robinhood @RobinhoodApp]

$HYPE is now available to trade on Robinhood.

[jeff.hl @chameleon_jeff]

TLDR: During recent volatility, Hyperliquid had 100% uptime with zero bad debt. This was Hyperliquid’s first cross-margin ADL in more than 2 years of operation. ADL does not change the outcome for any liquidated users. While some specific ADL providing trades were unfavorable, the aggregate effect of ADL was that traders realized significant pnl by closing positions at favorable prices that were only briefly available.

--

It’s sad to see some people attack Hyperliquid to deflect from their own platforms’ issues. Solvency and uptime are the two most important properties of a financial system. These are table stakes for any trading system, and gaslighting to convince users otherwise is unethical and irresponsible.

Below is more analysis on how Hyperliquid’s margining system handled the extreme volatility.

Background on liquidations

For a perps system to be solvent, every position must be backed by a minimum amount of collateral. This is called the “maintenance margin.” When positions do not meet the maintenance margin requirement, they are taken over by the system to be liquidated. Earlier today, many altcoins dropped by more than 50% in a short period of time. When this happens, long positions at 2x or higher leverage must be liquidated, or else the system accrues bad debt.

There were billions of dollars worth of positions liquidated on Hyperliquid in a matter of minutes. In a permissionless system, each user chooses their own position sizing and collateralization. Any system that does not liquidate the necessary users is irresponsibly gambling with other users’ funds. On Hyperliquid, every order, trade, and liquidation is transparently verifiable onchain. Many other venues significantly under-report liquidation data. This cannot be compared apples-to-apples against the fully onchain picture of Hyperliquid.

Background on HLP

HLP is a protocol vault with permissionless deposits that 1) provides order book liquidity and 2) performs backstop liquidations. The first role is negligible, with HLP trading less than 1% market share. The focus of this post is liquidations.

Liquidations are first attempted against the order book, and any user can provide liquidity to these market liquidations. Backstop liquidations occur when the order book does not have enough liquidity to absorb an undercollateralized position. In this case, HLP takes over the position along with its collateral. For improved risk management, HLP is split into several child vaults, and each liquidation is only sent to one child vault.

Background on ADL

Auto-deleveraging (ADL) is the liquidation mechanism of last resort, when market and backstop liquidations do not work. See Doug’s thread (link in reply) for a thorough explanation on the details of ADL.

Every ADL event has two sides: the “triggered” side is undercollateralized, while the “providing” side is decided as a function of profitability and leverage used.

Similar to backstop liquidations, even though providers to ADL are profitable on average, there are no guarantees for any specific event. Some ADL providing trades were unfavorable, such as when only some components of long/short portfolio were closed. The system is designed to minimize ADLs because they are unpredictable even if ADL providing trades are profitable on average. Because HLP is a non-toxic backstop liquidator, ADL is a rare settlement of last resort. As far as I know, this was the first cross-margin ADL event on Hyperliquid mainnet (ADL is more common for isolated-only assets such as hyperps, which are not backstop liquidated by HLP).

Summary of events

Over the course of 20 minutes, HLP backstop liquidated billions of dollars worth of positions.

HLP's philosophy has always been to provide liquidity of last resort. Contrary to misconceptions, HLP is a non-toxic liquidator that does not pick profitable liquidations. Instead HLP is a public good for maintaining system solvency. In particular, Hyperliquid has no liquidation fees. HLP’s design, including its multi-component child vault system, is the product of countless simulations, and allows HLP to maximally serve the benefit of the protocol while managing its own risk.

In fact, the liquidator child vaults of HLP themselves became undercollateralized in the course of backstop liquidating as many user positions as possible. This is by design, where child vaults are isolated from the other components of the overall strategy. HLP is treated no differently from other users when participating in ADL. In aggregate, HLP's child vaults were the largest addresses on the triggered side of ADL by more than an order of magnitude. The addresses on the providing side of ADL against HLP’s child vaults realized hundreds of millions of dollars in additional profit relative to the prices shortly before and after the dislocation.

On other venues, the liquidation engine is not transparent and therefore may not be subject to the same strict margin requirements as for normal users. On these venues, the exchange could have backstop liquidated more positions, bearing increased solvency risk to extract hundreds of millions in business revenue. This is not an acceptable tradeoff for Hyperliquid.

Finally, I know that this is a difficult time for many traders, and I hope the community can continue to support each other and grow together. As a contributor to Hyperliquid, I’ll continue to work my hardest to build the best possible platform that can house all of finance. Times like this highlight the importance of transparency and fairness in the financial system.

[Cappu @0xCappu]

@0xasrequired no because there is the underlying yield which is around 2% for khype and 6% for vkhype so that's the floor

[Kinetiq @Kinetiq_xyz]

The final kPoints distribution will occur on October 16th.

Heavily Kinetiq coded.

[Charlie @0xBroze]

https://t.co/udENNOHv6p

[Watcher.Guru @WatcherGuru]

JUST IN: $415,000,000 worth of Bitcoin shorts liquidated in the past 60 minutes.

[s @sershokunin]

Very soon, we will not need to guess where the market will open

[Cappu @0xCappu]

@icobeast @0xBreadguy AVAX L1 it's a CLOB

[Peter Schiff @PeterSchiff]

@CramerTracker We need a fartcoin strategic reserve.

[Hyperliquid @HyperliquidX]

The Hyperliquid blockchain has been upgraded to feature fully onchain validator voting for asset delisting. When a quorum of stake has voted for a delisting, the action automatically triggers onchain. This permissionless stake-based vote weighting primitive is built natively into HyperCore and technically requires no offchain coordination.

As a demonstration of the primitive, the Hyper Foundation validators 2-5 will vote to delist MYRO perps around 13:00 UTC on March 29. Hyper Foundation validator 1 will abstain from voting until delegations to initial Delegation Program participants are complete.

Like on other chains, most validators will likely make their intended votes clear offchain beforehand to provide users clarity and predictability. The Hyper Foundation does not act or speak on behalf of other validators. There may be interfaces built or provided in the future to summarize validator voting in a more user-friendly way.

[Hyperliquid @HyperliquidX]

After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps.

All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data. There is no need to open a ticket. Methodology will be shared in detail in a later announcement.

As with other chains, validators often need to convene to take decisive action as a group to ensure the integrity of the network. It is a priority to enhance robustness and transparency to the voting system.

Note that HLP’s 24 hour pnl as of writing is approximately 700k USDC. Technical improvements will be made, and the network will grow stronger as a result of lessons learned. More details will be shared shortly.

[Cappu @0xCappu]

@docXBT @pierre_crypt0 mute the word "blogger" it will filters a lot of them

[Bloomberg @business]

FartStrategy will accelerate the Fartcoin Flywheel. https://t.co/NMXLPyGH4I via @opinion

[Michael Saylor @saylor]

The company of the 47th President of the United States just bought $47 million in Bitcoin.