Trading Bot Glitch, Not Whale Activity, Behind HYPE Token’s $98 Surge on Lighter
October 28, 2025
A dramatic spike that briefly sent Hyperliquid’s HYPE token soaring to nearly $100 on decentralized exchange Lighter wasn’t caused by aggressive whale buying — it was the result of an automated trading malfunction, highlighting the ongoing challenge of maintaining both transparency and usability on decentralized trading platforms.
The price jump, which saw HYPE trading far above its global average, quickly caught the crypto community’s attention. Speculation ran rampant about large-scale buying, but Lighter later clarified that a bot error was to blame.
In a post on X, the exchange explained that a faulty trading bot had swept through the HYPE order book, buying at successively higher prices on thin liquidity. This led to a rapid, artificial price surge. Despite the spike, Lighter confirmed there were no forced liquidations or major trading disruptions for users.
The glitch, however, skewed Lighter’s price charts, prompting the platform to remove the affected data from its main interface to prevent confusion. While the anomalous price action no longer appears on the charts, Lighter emphasized that all on-chain data remains fully transparent and accessible through blockchain explorers.
According to Lighter, the decision was about ensuring a clearer front-end experience rather than altering blockchain records. The team noted that since Lighter’s protocol is open, other front ends can still display the raw, unfiltered data if they choose to.
The incident underscores the tightrope decentralized exchanges must walk between presenting accurate market data and maintaining usability during unexpected market events.
Not everyone supported Lighter’s move. Crypto analyst Duo Nine criticized the removal, suggesting it conceals the platform’s liquidity issues instead of addressing them:
“You should just admit that your order books are illiquid rather than censoring them to hide the issue. By doing this, you’re misleading users. What happens when the next liquidation event occurs?”
The episode serves as a cautionary tale for decentralized platforms, emphasizing that even a small automation error can distort markets and test a DEX’s commitment to open, transparent trading.
