XPL Price Manipulation by Whales - What Will Happen to Next?

2025-08-27
XPL Price Manipulation by Whales - What Will Happen to Next?

Recently,  a shocking event happened with XPL, a digital token that trades on the Hyperliquid platform. Large traders, often called whales, pushed the price up more than 200% in just minutes. This was not a normal rise. It was the result of price manipulation, using high leverage and thin liquidity.

Many traders were caught by surprise. Some whales made nearly $38 million in profit in under an hour, while smaller traders lost large amounts due to forced liquidations. With such huge swings, people are now asking: What will happen to XPL prices next?

This article explains what happened, why it matters, and what traders should watch out for in the future.

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What Happened with XPL Prices?

XPL Price Manipulation by Whales - What Will Happen to Next?

At first, XPL was trading around $0.40. Then, within minutes, the price jumped to almost $1.80. This was caused by a short squeeze. Here’s how it worked:

  • Whales placed large leveraged long positions.

  • The order book on Hyperliquid was thin, meaning there were not many buy and sell orders.

  • When the whales pushed prices higher, many traders who were betting against XPL (short sellers) were liquidated.

  • This chain reaction forced prices even higher, giving whales a huge profit.

While the whales celebrated, smaller traders saw their accounts wiped out. The sudden jump was not based on real demand, but on manipulation.

Read Also: Introduction to Plasma Chain and XPL Token

Why Was the Market So Easy to Manipulate?

There are two main reasons:

Thin Liquidity

XPL is still a new token, and its market is not very deep. This means just a few large trades can move the price by a lot.

High Leverage Trading

On Hyperliquid, traders can borrow extra funds (leverage) to make bigger bets. But leverage works both ways. It increases profits but also increases losses. In this case, leverage helped the whales push prices faster and harder.

What Could Happen Next to XPL Prices?

The future of XPL depends on a few key factors:

1. Short-Term Volatility

Since the surge was caused by manipulation, we can expect more sharp ups and downs. Prices may swing wildly as the market tries to settle.

2. Institutional and Retail Interest

Despite the risks, XPL has drawn interest from both big institutions and everyday traders. Partnerships, such as those with Binance, could bring more buyers and long-term support.

3. Leverage Risks

As long as traders keep using high leverage, the price can move sharply in either direction. If whales push again, we might see another sudden spike or drop.

4. Pre-Launch Sensitivity

XPL is still in its pre-launch stage. News, rumours, and large trades can all have a big effect. Until the token matures, it will stay highly sensitive to market moves.

5. Liquidity Traps

Traders must watch out for liquidity traps. A thin order book means prices can change rapidly with little warning. Those who are not careful may face big losses from sudden liquidations.

Read Also: The Ultimate Guide to Buy on Exchange

What Should Traders Do?

Here are some tips for anyone thinking about trading XPL:

  • Be Cautious with Leverage: Using borrowed money may look attractive, but it also raises risks.

  • Watch Whale Activity: Track large trades on Hyperliquid. If whales move, the price could swing quickly.

  • Manage Risk: Always use stop-losses and never trade more than you can afford to lose.

  • Stay Updated: Follow XPL news and liquidity levels closely.

Conclusion

The recent XPL price surge shows both the power and danger of whale manipulation. While whales earned millions, many small traders suffered. In the short term, XPL will likely remain highly volatile. But with growing institutional interest, there may also be chances for long-term growth.

For now, traders should stay careful, watch liquidity, and manage risks wisely. Follow Bitrue, the best advice is to play carefully, study charts, and always stay safe.

FAQ

What is a whale in crypto?

A whale is a trader or investor who holds a very large amount of a token. Because of their size, their trades can move markets.

What is a short squeeze?

A short squeeze happens when traders betting against a token are forced to buy it back as prices rise, causing the price to shoot up even faster.

Why did XPL jump 200% so quickly?

The jump was caused by whale manipulation using high leverage on a thin order book. It was not due to natural demand.

Is XPL safe to trade now?

It is risky. Prices may rise again, but they could also fall just as quickly. Traders should be cautious and avoid heavy leverage.

Disclaimer: The content of this article does not constitute financial or investment advice.

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