Paradigm data analyst: Most ADL occurs near price bottoms, which instead boosts short positions returns.

Odaily News Paradigm data analyst Strom stated that although some traders are dissatisfied with being closed short positions by ADL (Automatic Reduction) before the big dump, the data shows that most ADLs actually occurred near the price bottom, thereby locking in nearly optimal profits for the shorts. According to his analysis, Hyperliquid executed approximately 35,000 ADL operations on 20,000 users and 161 tokens last week, with 99% occurring within 5 minutes starting from October 10 at 21:16 (UTC). This phase coincided with the market's big dump, and the ADL trigger points were highly synchronized with the price movement, which subsequently led to a rebound in prices, resulting in ADL actually increasing the profits for most shorts.