Hyperliquid Reports $4 Million Loss from $200 Million Ether Liquidation
Hyperliquid experienced a $4 million loss due to the liquidation of a $200 million long trade on ETH. Key details include:
- A wallet opened a 50x leveraged long position with $4.3 million USDC margin for 113,000 ETH.
- The user withdrew funds, reducing the margin and resulting in a $1.8 million profit for them.
- Hyperliquid's Hyperliquid Provider (HLP) vault incurred a loss of $4 million.
- Hyperliquid confirmed no protocol exploit occurred; the user was liquidated after withdrawing funds.
- HLP's all-time profit remains approximately $60 million.
- Maximum leverage for BTC and ETH will be adjusted to 40x and 25x, respectively.
- The HYPE token dropped from $14 to under $13 but has since recovered.