Bot Error Triggers $98 Surge in Hyperliquid’s HYPE Token on Lighter Exchange

Hyperliquid’s HYPE token briefly spiked to nearly $98 on decentralized exchange Lighter — a massive premium over global prices — sparking widespread attention across the crypto community. Initially, traders speculated that whale activity was behind the sudden surge. However, Lighter later confirmed that the dramatic price jump was caused by a bot malfunction, not organic market demand.

According to the exchange’s statement on X, the bot error led to aggressive auto-buying through HYPE’s order book, driving prices higher on low trading volume. Despite the extreme movement, Lighter clarified that there were no forced liquidations or major disruptions for users. The incident, however, distorted candlestick charts on the platform, prompting the exchange to remove the affected data from its front-end interface. Lighter said this adjustment ensures clearer visuals for traders, though all on-chain transaction records remain transparent and publicly viewable through blockchain explorers.

Lighter emphasized that while blockchain data is immutable, its presentation can be adjusted to improve user experience. Other platforms using Lighter’s protocol may still display the raw trading data differently. The situation sheds light on a growing challenge for decentralized exchanges (DEXs) — maintaining transparency while ensuring usability when market irregularities occur.

Not all analysts agreed with Lighter’s handling of the situation. Crypto commentator Duo Nine criticized the exchange’s decision to hide the data, arguing it conceals liquidity weaknesses instead of addressing them. “You should admit that your order books are illiquid rather than censoring them to hide the issue,” Nine stated. “What happens next time users face liquidation?”

The bot-driven price spike serves as a reminder of the risks associated with automated trading and the delicate balance between transparency and interface clarity in decentralized finance (DeFi).