Hyperliquid co-founder responds to critics: ADL is unrelated to HLP, denies claims of "destroying $653 million in profits"
ChainCatcher reported that Hyperliquid co-founder Jeff posted on X to refute recent allegations regarding the ADL (Auto-Deleveraging) mechanism, stating that some commentators have drawn incorrect conclusions without understanding the core concepts. He emphasized that the ADL mechanism "does not transfer profits and losses to HLP," and pointed out that its handling of users and HLP is completely symmetrical, adding that "ADL has nothing to do with HLP or back-to-back liquidation."
Jeff also denied the claim that "ADL destroyed $653 million in profits," stating that such comments are based on misunderstandings. He criticized certain self-proclaimed academic authors for "using complex machine learning terminology to package erroneous arguments," and stressed that one should understand the subject of research before publishing studies or commentary.

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