After the recent ETH -Liquidation event, which caused $ 4 million loss for the hyperliquic provider vault, the platform said that it will increase the maximum leverage permitted for Bitcoin and Ethereum trade to prevent similar incidents in the future.
In the aforementioned liquidation event, a whale had a livered long position of 50x built on Ethereum (ETH) that reached 160.234 ETH. However, when the market moved against them, which caused the liquidation to be effectively caused, the user was still able to withdraw 17.09 million USD -Munt (USDC), with a profit before the liquidation was carried out on the Hyperliquid platform.
The HLP safe, which was designed to act as a backstop, absorbed the loss of $ 4 million (about 1% of the vluis TVL of $ 451 million) from this liquidation. Hyperliquility Provider Vault or HLP is a shared pot of money in which people deposit funds (in USDC) to earn (or to suffer losses) – entail their interests – solving the trading activities of Hyperliquid.
Speculation led to the fact that the user manipulated the HLP in one way or another by withdrawing equity from the HLP safe in a way that activated automatic liquidation event with the HLP that took the opposite position in the trade.
Hyperliquid recently recently the incident focused on XResignoring users there was no exploit or hack. The platform claimed that their liquidation engine simply could not process the size of the user’s position. The platform also said that they will increase the maximum leverage for Bitcoin (BTC) and Ethereum to 40x and 25x respectively to increase the maintenance margin for larger positions.
