Hyperliquid reported a loss of $ 4 million within 24 hours in his liquidity provider (HLP) vaults.
According to a March 12 after On X the loss followed an important liquidation event with a high-risk trader.
After the news, the Hype -Hyperliquid hype reacted negatively to the event and more than 3%fell over the past 24 hours. The token reached a low point of $ 12.80 before it returned a bit to $ 13.90 from the moment of the press.
Hyperliquid is the largest decentralized perpetual exchange through trade volume, which checks more than 64% of the market.
What happened?
The protocol stated that a trader who used the wallet address 0xf3f4 had a large Ethereum (ETH) long position.
On-Chain Analyst Embercn reported That the whale opened a 50x lifting tree position of 175,000 ETH, with a value of approximately $ 340 million.
However, the trader later closed part of the position, with $ 17.09 million USDC. This movement reduced the margin on the remaining 160,000 ETH-long position, which led to large-scale liquidations.
Hyperliquid confirmed the development, but noted that the trader was still able to conclude with a profit of around $ 1.8 million. However, the event had a negative effect on HLP, where a loss of $ 4 million was seen during the reporting period.
Hyperliquid emphasized that HLP is not a risk -free strategy, although the safe maintains a historic net profit of around $ 60 million.
HLP acts as a community -driven liquidity safe within the Hyperliquid ecosystem. It supports strategies for making market and liquidation, so that users can set USDC in exchange for part of the profit or losing the platform.
This model brings trade strategies at the institutional level to retail users, generating income through trading costs, financing rates and liquidations. From the moment of the press, the safes have a Negative annual return of 34%.
After this event, Hyperliquid stated:
“Max leverage is updated for BTC and ETH up to 40x and 25x respectively to increase the maintenance margin for larger positions. This offers a better buffer for Backstop -Liquidations of larger positions. “
