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XPL Short Sellers Deposit Millions in USDC on Hyperliquid to Avoid Liquidation

Addresses 0x142a and 0x0Aa9 transferred $44 million and $29 million USDC respectively, aiming to raise liquidation thresholds, according to Lookonchain data.

USDC
HYPE

Summary

Lookonchain reported that XPL short sellers are moving significant USDC amounts to Hyperliquid in an effort to prevent liquidation. Notably, one address (0x142a) deposited $44 million and another (0x0Aa9) added $29 million, with both aiming to increase their liquidation price levels.

Terms & Concepts
  • Liquidation Price: The price level at which a trader’s leveraged position is automatically closed to prevent further losses.
  • USDC (USD Coin): A stablecoin pegged to the U.S. dollar, commonly used in crypto trading and lending for stability.
  • Short Selling: A trading strategy where investors bet on the decline of an asset’s price by borrowing and selling it, intending to repurchase later at a lower price.