Today, HYPE experienced a significant price drop after the HLP Vault suffered losses exceeding $4 million in the last 24 hours.
Sharp Drop in HYPE Price
Earlier today, the price of HYPE fell by more than 5%. The coin saw a price decline from about $14.5 to $12.75, leading to a market cap decrease from $4.69 billion to $4.26 billion before rebounding.
HLP's Loss Over $4 Million
Reports from EmberCN revealed a whale liquidation event left Hyperliquid’s HLP Vault with losses exceeding $4 million. Whale 0xf3f4 opened a long position of 175,000 ETH worth approximately $340 million with high leverage, earning $8 million. After closing 15,000 ETH, the whale reportedly transferred over 17 million USDC back to its address. The remaining 160,000 ETH long position was liquidated, resulting in significant losses for HLP.
Clarifications from Hyperliquid
The team at Hyperliquid clarified in a statement that there was no protocol exploit. They noted the whale had unrealized PNL, withdrew which reduced margin, leading to liquidation. HLP's loss in the last 24 hours was approximately $4 million. They also stated that maximum leverage will be updated to 40x for BTC and 25x for ETH.
The current state of HYPE and the losses faced by HLP highlight the necessity for better risk management systems and liquidation mechanisms to prevent substantial financial setbacks.
