Odaily Planet Daily reports that Hyperliquid co-founder Jeff posted on X to refute recent allegations against the ADL (Auto-Deleveraging) mechanism, stating that some commentators have drawn incorrect conclusions without understanding the core concepts. He emphasized that the ADL mechanism “does not transfer PnL to HLP,” and pointed out that its handling of users and HLP is completely symmetrical, adding that “ADL has nothing to do with HLP or back-to-back liquidation.” Jeff also denied claims that “ADL destroyed $653 million in profits,” saying that such statements are based on misunderstandings. He criticized certain self-proclaimed academically-backed authors for “using complex machine learning terms to package erroneous arguments,” and stressed that one should understand the subject before publishing research or commentary.
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