{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T20:34:49Z","timestamp":1786739689917,"version":"build-2736575974"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>We document the inside-market response of Hyperliquid-the largest decentralized perpetual futures venue-to the October 10, 2025 system-wide liquidation cascade. Using the venue's public L2 order-book archive, we construct a minute-level panel spanning BTC, ETH, SOL, XRP, and DOGE perpetual contracts across a 92-day window centered on the event. Three findings emerge. First, the cascade was a tightly compressed intraday event: median quoted spread pooled across assets reached 9.4 basis points at hour 21 UTC and the 95th percentile reached 87.5 basis points, with intraday recovery well under way by end of day. Second, across the 23-day post-event window prior to a separate market-wide selloff beginning November 3, 2025, quoted spreads on all five contracts returned to within 1.2 times pre-event levels and three of five contracts returned to within 1.1 times. Third, inside-quote depth contracted persistently over the same window, with four of five contracts showing further depth contraction from days 1-7 to days 17-23 post-event, ending between 66 percent and 79 percent of pre-event levels. We interpret these results as evidence that market-maker response to a perpetual futures tail event is two-regime: pricing recovers within weeks while inventory commitment persistently contracts. The pattern has implications for how execution quality and venue resilience should be measured: spread-only metrics systematically understate the post-event impairment of inside-market liquidity.<\/jats:p>","DOI":"10.2139\/ssrn.6636998","type":"posted-content","created":{"date-parts":[[2026,4,24]],"date-time":"2026-04-24T13:44:15Z","timestamp":1777038255000},"source":"Crossref","is-referenced-by-count":0,"title":["Two-Regime Liquidity Recovery After a Perpetual Futures Liquidation Cascade: Evidence from Hyperliquid and the October 10, 2025 Event"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T19:31:25Z","timestamp":1786735885000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6636998"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6636998","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}