I WAS WRONG and it seems that hyperliquid premarket IS STILL NOT FIXED after todays patch and imo NOT SAFE TO TRADE in current form:
WLFI and XPL are trading 20% above binance with BOTH oracle price (used for funding) and mark price (used for liquidations) at very similar elevated prices.
Its been confirmed the patch is live and reading updated documentation we can see that MARK price (used for liquidations) uses median price between:
1. hl oracle (the one that caused liquidations yday) with very SLIGHT dampening effect (coz its based on hl oracle which self references itself and hl prices)
2. median of best bid, best ask, last trade on hl
3. external source like binance/bybit
Which means that in extreme, high risk situations like yesterday median price of these 3 (ie MARK price) will always be based on hyperliquid ONLY and fully EXCLUDE external sources like binance/bybit. Thats why current mark price is v similar to the oracle price and has no connection to binance/bybit prices at all.
With todays update yesterdays attack would proceed in EXACTLY the same way causing massive liquidation and OI wipeout.
Hopefully jeff is cooking a better fix, need to make sure MARK price incorporates external sources when hl prices diverge bigly.
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