Why do Hyperliquid HIP-4 spreads widen around important levels?

When the underlying sits near a contract threshold, every new print can feel more informative. That makes passive quoting more dangerous because makers are more likely to get picked off by someone reacting faster to the same information.

The problem is not just uncertainty. It is uncertainty with a sharp consequence. Around key levels, the same small move can carry outsized meaning for the final resolution odds, so quoted liquidity often gets thinner and more selective.

A wide spread near an important level is not just a nuisance. It is telling you that the market is harder to express cleanly right now. If your edge depends on perfect entry, the opportunity may be weaker than it first appears.

Track spread width together with threshold distance and time-to-expiry. That helps answer whether the market gets structurally worse to trade exactly when the thesis feels most tempting.