[Hyperliquid Responds to XPL Surge: No Technical Issues or Bad Debt Occurred on the Platform, Users Advised to Manage Risks Independently] BlockBeats News, August 27 — Hyperliquid officially announced in its Discord channel that significant volatility occurred in the XPL market today, with the marked price increasing approximately 2.5 times within minutes. During this period, the Hyperliquid blockchain operated normally as designed, with no technical issues: liquidations were first executed based on the order book, followed by the automatic deleveraging (ADL) mechanism initiated according to the public protocol. Hyperp employs a fully isolated margin system, ensuring all users' profits and losses are segregated from other asset positions. This liquidation and ADL event only affected XPL positions, and the protocol incurred no bad debt. Pre-listing markets are inherently unpredictable. The robust marked price formula adopted by Hyperp effectively prevented instantaneous surges, requiring order book prices to remain elevated for several minutes before triggering liquidation. Hyperliquid is a permissionless multi-market protocol, with each market carrying unique risk characteristics. Users are strongly encouraged to read documentation to understand the operational mechanisms of markets like Hyperp and implement appropriate risk management before trading. All Hyperp products include risk warnings, reminding users of low liquidity, high volatility, and increased liquidation risks. Lastly, some users have expressed interest in using highly collateralized positions for shorting. Following the next network upgrade, Hyperp's marked price will be capped at 10 times the 8-hour marked price EMA. Although this condition has never approached being triggered, this measure provides a mathematical boundary for liquidation prices of over-collateralized short positions. The 8-hour EMA has already been published as Hyperp's oracle price on-chain and via API. It should be noted that this upgrade will not alter any liquidation or ADL outcomes from today but is intended to encourage liquidity provision during periods of volatility. Different suggestions proposed by users come with their own risk vectors, and the optimal solution is to introduce more liquidity into these markets to mitigate the impact of volatility.