Looked at this XPL stuff on HL. Honestly I don't really see this one as an exploit (while jellyjelly obv was). The issue is not that Hyperliquid malfunctioned, but rather that some hedgers shorted an asset that may go up expeditiously. Yet nothing was stopping them from depositing more to short further. I guess the only thing is that maybe some people didn't understand is how Isolated vs Cross margin works, so they had plenty of money in their account but got flash liqed anyway. ...

Risk Management - Portfolio risk management prioritizes investing only what one can afford to lose, regardless of the trade's appeal [1] - Isolated trades are preferred over cross margin to limit potential losses to a single trade rather than risking the entire account [1] Portfolio Allocation - Generally, less than 1% of the portfolio is allocated to most trades, varying based on conviction and portfolio state [1] - High leverage is rarely used and is reserved for high-conviction plays believed to have bottomed [1] Investment Strategy with $20,000 Portfolio - $5,000 is set aside as an emergency fund or to recover from potential losses [1] - Approximately 80% of the funds are allocated to spot coins, with 60% in strong memecoins like BONK and FLOKI, and 40% in low-cap, on-chain plays [1] - Around 20% is allocated to leverage trading with the understanding that 100% of this amount could potentially be lost [1]