3 months ago
The liquidation of an implicit $200 cardinal agelong commercialized connected ether (ETH) pb to a $4 cardinal nonaccomplishment for Hyperliquid, wherever the "whale" placed the bet.
The liquidation saw wallet ‘0xf3f4’ opening a highly leveraged 50x agelong ETH position, depositing $4.3 cardinal USDC arsenic borderline for a full size of 113,000 ETH.
The wallet past started withdrawing funds, reducing the borderline beneath attraction requirements successful a determination that resulted successful a $1.8 cardinal nett for the idiosyncratic but a $4 cardinal nonaccomplishment for Hyperliquid’s Hyperliquid Provider (HLP) vault.
Vaults are a blockchain-based merchandise connected Hyperliquid wherever users tin deposit USDC to perchance gain a stock of profits generated by trading strategies of different users oregon the vault’s owner.
The moves created speculation among Hyperliquid users of a imaginable exploit of the platform, a rumor it doused successful an X post.
“There was nary protocol exploit oregon hack,” Hyperliquid said. “This idiosyncratic had unrealized PNL, withdrew, which lowered their margin, and was liquidated. They ended with ~$1.8M successful PNL. HLP mislaid ~$4M implicit the past 24h. HLP's all-time PNL remains astatine ~$60M. As a reminder, HLP is not a risk-free strategy.”
Hyperliquid added that it volition update the maximum leverage for bitcoin (BTC) and ETH to 40x and 25x, respectively, to summation attraction borderline requirements for larger positions arsenic a preventive measurement for akin moves successful the future.
Hyperliquid’s HLP vault inactive has an all-time nett of $60 million, information shows. Meanwhile, the platform’s HYPE token dropped from $14 to nether $13 successful a knee-jerk determination aft the liquidation, though it has since afloat recovered the little descent arsenic of precocious Asian hours.
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