MemCast
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#cancel‑priority1#execution2#toxic-flow2
The protocol prioritizes cancels over taker orders to curb toxic flow
  • Cancel requests are processed before new taker orders, preventing aggressive stop‑loss hunting.
  • This reduces overall volume slightly but dramatically improves execution quality for honest participants.
  • Jeff frames the change as a first‑principles decision: protect real users rather than chase raw volume.
  • The approach demonstrates that a small protocol tweak can have outsized impact on market health.
Jeff PersUnchained00:12:04

Supporting quotes

Quote
00:12:04
“protocol kind of like prioritizes cancels over ticker orders.” — Jeff Pers
Quote
00:12:22
“if you're a little bit more like first principles about it and you think like who are the real users of this platform... then all of a sudden this change looks very good.” — Jeff Pers

From this concept

Cancel-Priority Design: Cutting Toxic Flow

Hyperliquid deliberately prioritizes order cancellations over new taker orders, a design choice that reduces toxic high-frequency activity while preserving price discovery for genuine traders.

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