TechFlow news, on October 19, Hyperliquid founder Jeff clarified on X that the platform's auto-deleveraging (ADL) system generated hundreds of millions in net gains for traders on October 10, rather than prioritizing protocol revenue. While the Hyperliquid HLP pool could have earned more if more positions had been forcibly taken over and liquidated by the system, doing so would have introduced excessive risk. The current ADL mechanism both reduces HLP exposure and benefits users.
The team stated that its ADL ranking logic aligns with mainstream CEX practices, calculated based on leverage and unrealized PnL. Regarding community-suggested complex algorithms (such as cross-asset partial hedging), Hyperliquid believes the current approach is more robust but is exploring potential optimization opportunities.
