A massive liquidation event involving a whale\u2019s $340 million ETH position has sent shockwaves through Hyperliquid, resulting in an 8.5% price drop for its native HYPE token.<\/p>\n
The fallout also left the platform\u2019s HLP vault with a $4 million loss, sparking concerns among traders and investors that it may have fallen victim to hackers.<\/p>\n
While there had been rumors that a potential exploit or vulnerability may have led to the liquidation, Hyperliquid clarified<\/a> that the event stemmed from a margin withdrawal that had reduced the trader\u2019s collateral below maintenance levels.<\/p>\n According to EmberCN<\/a>, the whale in question used high leverage to build a long position involving 175,000 ETH valued at about $340 million. They later withdrew $17.09 million in margin, decreasing their collateral, triggering the liquidation event, and causing a cascade of losses.<\/p>\n The HLP vault, which serves as a liquidity backstop for the protocol, absorbed the position at $1,915 per ETH, but the sheer size of the liquidation led to a $4 million deficit. In response, the platform has said it will modify its risk parameters to curb similar incidents in the future.<\/p>\n Maximum leverage limits for Bitcoin will be updated to 40x from 50x while Ethereum\u2019s will now stand at 25x from 33x to \u201cprovide a better buffer for backstop liquidations of larger positions.\u201d<\/p>\n Despite the setback, Hyperliquid<\/a> stated that the HLP vault still holds an all-time profit of $60 million. The protocol also recently expanded its ecosystem, launching HyperEVM<\/a>, a smart contract execution layer designed to improve functionality within the network.<\/p>\n Hyperliquid\u2019s governance token, HYPE, was not left unscathed by the drama. Soon after the occurrence, its price dropped from $14.04 to $12.84, an 8.5% dip in less than half an hour. However, it soon recovered slightly, moving back up to $13.36.<\/p>\n The current price is still 3.2% lower than its level from 24 hours ago. The token is also in the red across different periods, with the worst losses registered over 30 days, at more than 44%. Further, its 24.3% plunge in the past week means HYPE is underperforming both the broader crypto market and similar smart contract platforms, which are down 10.10% and 7.40%, respectively.<\/p>\n The post HYPE Sinks 8.5% as Whale Liquidation Causes $4M Hyperliquid Vault Loss<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" A massive liquidation event involving a whale\u2019s $340 million ETH position has sent shockwaves through Hyperliquid, resulting in an 8.5% price drop for its native HYPE token. The fallout also left the platform\u2019s HLP vault with a $4 million loss, sparking concerns among traders and investors that it may have fallen victim to hackers. What […]<\/p>\n","protected":false},"author":0,"featured_media":51645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-51644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51644"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51644"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/51645"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Market Impact<\/h2>\n