The Tri-Address benefited from a stroke of luck in the Hyperliquid Excalibur Fork, profiting $6.958 million from a short position at the low point due to the ADL mechanism.

BlockBeats News, July 28th, according to on-chain analyst Ai Auntie (@ai_9684xtpa), in this morning's Hyperliquid Shanghai Lishi needle-insertion incident, three addresses shorted at the bottom due to the ADL mechanism, resulting in a profit of $6.958 million.

The address starting with 0xd04 triggered the ADL to close a short position of 4510 SKHX at $931.36, earning $2.185 million; the address starting with 0xcaf triggered the ADL to close a short position of 5920 SKHX at $931.36, earning $2.55 million; the address starting with 0x84a triggered the ADL to close a short position of 6010 SKHX at $931.36, earning $2.233 million.

Hyperliquid's ADL (Auto-Deleveraging) is the last resort mechanism in extreme market conditions: when a liquidated position breaches the position and the HLP insurance fund cannot cover the loss, the system prioritizes the profitable counterparty for liquidation based on the formula (mark price/entry price) × (nominal position/account value). It forcefully liquidates high-profit, high-leverage positions at the mark price to offset the bad debt with unrealized profits, ensuring that the entire platform does not have a negative balance.