According to Deep Tide TechFlow news, on April 5th, Jeff, co-founder of Hyperliquid, responded to the recent negative rumors circulating in the market. Jeff stated that the platform’s Margin design mathematically ensures the protocol’s solvency, and the losses of HLP (Hyperliquid Liquidity Protocol) are limited to the pool itself.
After the previous JELLY incident, the platform has optimized HLP. Currently, the liquidation component vault of HLP has set a collateral cap, and potential losses are limited through a backup liquidation mechanism. Hyperliquid still maintains its original operating mechanism, processing under-collateralized positions in the following order: 1) market liquidation 2) backup liquidation 3) automatic deleveraging (ADL). The backup liquidation of HLP has introduced a new protection mechanism by setting a loss cap, making the cost of manipulating the marked price far greater than the limited gains that can be obtained from HLP.
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