Hyperliquid Activates Cross-Margin Auto-Deleveraging System Across Perpetual Markets

Hyperliquid deployed its cross-margin Auto-Deleveraging (ADL) liquidation system across all major perpetual contract markets on November 28, following a month of internal stress testing and simulations, BlockBeats reports. The mechanism serves as a backup liquidation method when insurance funds cannot fully absorb losses from liquidated positions, potentially reducing positions of high-leverage traders with substantial unrealized profits to cover funding gaps. The platform said ADL will only activate under exceptional circumstances to maintain market integrity by preventing cascading defaults.