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Hyperliquid backstop absorbed most forced sales during October 2025 crash
During the Oct. 10, 2025 worst minute, about $576 million of $641 million in forced selling was diverted off the public order book to Hyperliquid’s backstop.
Hyperliquid, an on-chain perpetual futures venue, redirected most forced selling during the October 2025 crypto crash away from its public order book, according to a new research preprint covered by CryptoSlate. The study found that about $641 million was forced-sold on Hyperliquid at 21:19 UTC on Oct. 10, with roughly $576 million sent to the venue’s backstop and about $64 million reaching the order book.
The report highlights the potential impact of that routing. CryptoSlate said the split matters because a thinning public order book can push prices lower and trigger additional liquidations for leveraged positions, while an internal backstop can absorb orders and interrupt that liquidation feedback loop within the venue.
The preprint was not peer reviewed and measured only Hyperliquid rather than the wider market. It found that 62.6% of forced-sale value was absorbed off-book after the onset, and that the liquidation event was highly compressed, with 87.8% of forced selling occurring within 30 minutes and 96.5% within one hour after onset.
Mechanically, Hyperliquid’s liquidation rules first attempt to close positions through market orders, and under specified conditions a liquidator vault can take over. The study also modeled liquidation cascades using a branching ratio, keeping Hyperliquid’s structural estimate below 0.2 in every measured regime, with the authors interpreting the backstop as damping feedback at the crash peak.