TechFlow, April 5 — Jeff, co-founder of Hyperliquid, responded to recent negative rumors circulating in the market. Jeff stated that the platform's margin design mathematically ensures protocol solvency, and losses within the HLP (Hyperliquid Liquidity Pool) are strictly limited to the pool itself.
Following the previous JELLY incident, the platform has optimized the HLP. The treasury of HLP's clearing component now has a collateral cap, limiting potential losses through a backstop clearing mechanism. Hyperliquid continues to maintain its original operational framework, handling undercollateralized positions in the following order: 1) Market Clearing, 2) Backstop Clearing, 3) Automatic Deleveraging (ADL). The current HLP backstop clearing mechanism includes an additional protection layer—by setting a loss ceiling, the cost of manipulating the mark price far exceeds the limited gains an attacker could extract from HLP.
