$166M leaves Hyperliquid on March 12 amid major liquidation

Hyperliquid, a decentralized exchange, saw a net outflow of $166 million on March 12, according to Wu Blockchain on X, citing data from Dune Analytics. The platform’s assets under management (AUM) dropped to $2.26 billion from $2.43 billion just a day earlier. This marked the platform's second-largest daily withdrawal to date. The outflow followed a substantial liquidation involving an ETH long position and a $4 million loss in the Hyperliquidity Provider (HLP) Vault. Wu Blockchain suggested that this withdrawal surge was largely due to depositors fleeing the HLP Vault. This development comes amid concerns within the crypto community about alleged manipulations of Hyperliquid’s liquidity pool and liquidation mechanisms, which reportedly led to losses for some depositors.