Hyperliquid

Liquidation and auto-deleveraging 14/20

How positions are picked for auto-deleveraging

Published, with the ranking formulahyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Partial liquidation

Yeshyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Auto-deleveraging in the last 24 months

Large, over $100M or over 1% of open interestAbout $2.1B of positions were closed by ADL on 2025-10-10, the first cross-margin ADL in the venue's history.arxiv.org (opens in a new tab) · 10 October 2025

Risky markets isolated or capped

Yescryptorank.io (opens in a new tab) · March 2025

Insurance fund and who absorbs losses 13/15

Backstop balance readable on-chain

Yesdefillama.com (opens in a new tab) · 26 October 2026

Backstop against total open interest

2.0%HLP vault $150.3M (DefiLlama TVL API) divided by Hyperliquid Perps open interest of $7.37B (DefiLlama open-interest API), both read on 2026-11-03.api.llama.fi (opens in a new tab) · 3 November 2026

Order of loss absorption published

Yeshyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Price oracle 15/15

Independent sources in the liquidation price

Three or morehyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Price update interval

Every 3 secondshyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Who signs prices

Many partieshyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Oracle failure with user losses, last 24 months

None foundNews searches on the JELLY, POPCAT, FARTCOIN and October 2025 ADL events found market manipulation and liquidation cascades, but no oracle or price-feed failure that cost users money.hyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Custody and withdrawal 4/15

Users hold their own funds

Yeshyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Contract-level exit if the operator stops

NoBridge2 withdrawals need signatures from validators holding more than 2/3 of stake, and the contract has no user-triggered forced exit.github.com (opens in a new tab) · 3 November 2026

Withdrawals can be frozen without a delayed vote

YesLocker addresses can vote an emergency lock that pauses the bridge, and only a cold-wallet validator quorum can unlock it.github.com (opens in a new tab) · 3 November 2026

Delay before upgrades apply

None: upgrades can apply at onceHyperCore changes ship as signed binary releases that validators run, with no on-chain delay, and Bridge2's cold quorum can change the dispute period at once.github.com (opens in a new tab) · 3 November 2026

Incidents in the last 24 months 9/15

• 26 March 2025Discretionary intervention−3

  Validators delisted the JELLY perp and settled it at $0.0095 instead of about $0.50 after an attack on the HLP vault.

  cointelegraph.com (opens in a new tab)

• 12 November 2025Discretionary intervention−3

  After a suspected POPCAT manipulation cost HLP about $4.9M, deposits and withdrawals were paused and the position was closed manually.

  theblock.co (opens in a new tab)

Reviewed and not counted

• 9 April 2026Not counted: a trading loss to the market-making vault with no code bug or key compromise; the auto-deleveraging it caused is already counted.

  A FARTCOIN 'suicide liquidation' (PeckShield's label) left HLP with a realized loss of about $1.2M-$1.5M and triggered ADL; the team attributed it to market dynamics, not a code bug.

  cointelegraph.com (opens in a new tab)

Liquidity 6/10

A $100,000 market order in BTC or ETH, buying and selling, moved the price by 0.20 basis points on average (2 readings, 3 November 2026). The median across the venues we measure was 1.00.

Who provides the liquidity

Not disclosedThe docs do not publish who provides liquidity or how much of it each provider or vault supplies.hyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Transparency and operations 4/10

Public audits of core code, last 24 months

NoneThe audits page lists only undated Zellic reports on the legacy bridge plus an unnamed audit of Circle's contracts, so no report is dated November 2024 or later.hyperliquid.gitbook.io (opens in a new tab) · 3 November 2026

Core code public

NoOnly the bridge contract is public, and the HyperCore engine ships as signed binaries (the node repo holds only a Dockerfile and shell scripts).github.com (opens in a new tab) · 3 November 2026

Public status page

YesIts status-page API names the page 'Hyperliquid' and was updated 2026-11-03.hyperliquid.statuspage.io (opens in a new tab) · 3 November 2026

Operating company named in the terms

YesThe terms say the Interface is made available by Hyperliquid Corp.app.hyperliquid.xyz (opens in a new tab) · 15 June 2026