  We report Chandra observations of the dwarf nova WX Hyi in quiescence. The
X-ray spectrum displays strong and narrow emission lines of N, O, Mg, Ne, Si, S
and Fe. The various ionization states implied by the lines suggest that the
emission is produced within a flow spanning a wide temperature range, from T ~
10^6 K to T >~ 10^8 K. Line diagnostics indicate that most of the radiation
originates from a very dense region, with n ~ 10^{13}-10^{14} cm^{-3}. The
Chandra data allow the first tests of specific models proposed in the
literature for the X-ray emission in quiescent dwarf novae. We have computed
the spectra for a set of models ranging from hot boundary layers, to hot
settling flows solutions, to X-ray emitting coronae. WX Hyi differs from other
dwarf novae observed at minimum in having much stronger low temperature lines,
which prove difficult to fit with existing models, and possibly a very strong,
broad O VII line, perhaps produced in a wind moving at a few x 10^3 km/s. The
accretion rate inferred from the X-rays is lower than the value inferred from
the UV. The presence of high-velocity mass ejection could account for this
discrepancy while at the same time explaining the presence of the broad O VII
line. If this interpretation is correct, it would provide the first detection
of a wind from a dwarf nova in quiescence.
