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ChainCatcher News, on August 27, Hyperliquid officially announced in its Discord channel that there was significant volatility in the XPL market today, with the mark price rising approximately 2.5 times within a few minutes. During this period, the Hyperliquid blockchain continued to operate normally as designed, with no technical issues: first, liquidations were executed according to the order book, followed by the initiation of the automatic deleveraging (ADL) mechanism in accordance with the public protocol. Hyperp adopts a fully isolated margin system, where all users' profits and losses are isolated from other asset positions. This liquidation and ADL only affected XPL positions, and the protocol did not incur any bad debt. The pre-listing market itself is inherently unpredictable. The robust mark price formula used by Hyperp effectively prevents instantaneous surges, requiring order book prices to remain elevated for several minutes before triggering liquidation. Hyperliquid is a permissionless multi-market protocol, with each market having its own unique risk characteristics. Users are strongly advised to read the documentation to understand the operating mechanisms of markets such as hyperp and to implement appropriate risk management before trading. All hyperp products include risk warnings, reminding users of the risks of low liquidity, high volatility, and increased liquidation risk. Finally, some users have requested the ability to short using highly collateralized positions. After the next network upgrade, the hyperp mark price will be capped at 10 times the 8-hour mark price EMA. Although this condition has never come close to being triggered, this move provides a mathematical boundary for the liquidation price of over-collateralized short positions. The 8-hour EMA has already been published as the oracle price for hyperp both on-chain and via API. It should be noted that this upgrade will not change any of today’s liquidations or ADL results, but is intended to encourage liquidity provision during periods of volatility. Different suggestions from users come with their own risk vectors, and the best solution is to introduce more liquidity to these markets to reduce the impact of volatility.