According to @KookCapitalLLC, Hyperliquid’s HLP liquidation process is more transparent than other venues, citing Jeff’s statement that HLP is a 'non-toxic liquidator' that does not select only profitable liquidations and serves as 'a public good for maintaining system solvency' (source: @KookCapitalLLC on X, Oct 11, 2025; source: @chameleon_jeff on X). The post frames Hyperliquid’s approach as non-selective and solvency-first, a detail relevant for perps traders and HLP depositors assessing venue risk and liquidation mechanics (source: @chameleon_jeff on X; source: @KookCapitalLLC on X). The author also expresses a personal view that HLP depositors may receive an airdrop in an upcoming season, which is opinion and not confirmed information (source: @KookCapitalLLC on X).

According to @ThinkingUSD, Hyperliquid’s HLP recorded a +$41,500,000 day with a 10% yield on cash in a single day, indicating an exceptional daily return for the LP pool — source: @ThinkingUSD on X, Oct 10, 2025. The source specifies HLP on Hyperliquid but provides no additional breakdown on methodology, market contributors, or time-window granularity beyond “one day,” which limits further quant analysis directly from the post — source: @ThinkingUSD on X, Oct 10, 2025. For trading focus, participants monitoring Hyperliquid may evaluate HLP exposure, venue liquidity, funding dynamics, and open interest given the reported LP outperformance to guide risk sizing and execution timing — source: @ThinkingUSD on X, Oct 10, 2025.

According to @ThinkingUSD on Twitter, a significant portion of revenue for crypto trading desks comes from liquidations, similar to the High Leverage Program (HLP). Many major exchanges now have specialized liquidation programs where market makers (MMs) take the opposite side of liquidated trades. However, exchanges themselves continue to profit substantially from handling liquidation flow directly. For traders, understanding the structure of these liquidation programs is crucial, as it affects liquidity, volatility, and overall trading risk. These mechanisms directly impact crypto market dynamics and should be factored into trading strategies (Source: @ThinkingUSD, May 30, 2025).

According to Ai 姨 (@ai_9684xtpa), rising concerns around HLP (High Leverage Positions) are drawing attention in the crypto trading community due to increased liquidation risks. The referenced tweet highlights that recent volatility has led to a surge in high-leverage positions on major exchanges, exposing traders to sudden market swings and potential mass liquidations. This environment can trigger rapid price movements in cryptocurrencies such as Bitcoin and Ethereum, affecting both spot and derivatives markets (source: Ai 姨 on Twitter, May 29, 2025). Traders are advised to closely monitor leverage ratios and employ risk management strategies to navigate heightened volatility.

According to Lookonchain, a whale opened a long position of 175,179 ETH ($335.6M) with 50x leverage, actively closing 14,945 ETH ($28.7M) to secure a profit of $1.86M. This move left 160,234 ETH ($306.85M) at risk of liquidation, resulting in a $4M loss for Hyperliquidity Provider (HLP) within 24 hours.