Hyperliquid has activated its cross-margin auto-deleveraging (ADL) system for the first time, introducing a new mechanism to maintain market stability. The ADL system is designed to protect solvency during extreme market conditions by automatically reducing leverage when necessary. This system is complemented by the Hyperliquid Protection (HLP) vault, which acts as a financial backstop, stepping in with funds to ensure continuous market operation when a trader's position is liquidated and no other traders are available to assume the position.