• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Hyperliquid Faces $4M Loss from $200M Position Liquidation

user avatar

by Giorgi Kostiuk

5 hours ago


On March 12, 2025, Hyperliquid faced a $4 million loss due to a $200 million position liquidation on its decentralized exchange platform.

Events Leading to Liquidation

A trader identified by wallet address ‘0xf3f4’ opened a 50x leveraged long position, depositing $4.3 million in USDC to control 113,000 ETH. As Ethereum's price fluctuated, the trader began withdrawing funds, leading to an automatic liquidation. Despite the liquidation, the trader secured a $1.8 million profit, while Hyperliquid’s vault bore a $4 million loss.

Impact on the HLP Vault and Platform Response

The $4 million loss represented about 1% of the vault’s total value locked (TVL) and 6.6% of its historical profits of $60 million. In response, Hyperliquid lowered maximum leverage limits: for Bitcoin to 40x, and for Ethereum to 25x to enhance risk management.

Market Reaction and Future Outlook

Following the liquidation, Hyperliquid's native token, HYPE, fell by 8.5%. This incident triggered discussions on the platform’s risk management shortcomings. However, Hyperliquid maintains that no exploitation occurred. The event highlights the risks of high-leverage trading.

Hyperliquid aims to restore trust by improving its risk management systems. The incident underscores the importance of robust practices in DeFi.

0

Share

Other news

Bitcoin Open Interest Increase and Its Market Impact

Prices and weak demand push Bitcoin investors towards caution.

user avatarGiorgi Kostiuk

6 minutes ago

Qubetics: Opportunities and Prospects of the New Cryptocurrency

Qubetics offers innovative blockchain solutions with high ROI potential and real utility. Learn all about this project's aspects.

user avatarGiorgi Kostiuk

12 minutes ago

U.S. Regulators Under Pressure as Coinbase Demands Clarity

Coinbase seeks transparency from U.S. regulators, filing Freedom of Information Act requests for clarity on regulatory actions.

user avatarGiorgi Kostiuk

16 minutes ago

Arctic Pablo Coin: A Second Chance for Crypto Investors

Arctic Pablo Coin offers new opportunities for investors after Brett's success with its unique presale structure.

user avatarGiorgi Kostiuk

17 minutes ago

Trump's Trade War: Impacts on Various Industries

How is Trump's trade war affecting the U.S. economy? Discover which industries are thriving and which are struggling due to the imposed tariffs.

user avatarGiorgi Kostiuk

17 minutes ago

Comparing Solana, Polkadot, and Qubetics in the Crypto World

Overview of Solana and Polkadot's roles and the emergence of Qubetics in blockchain.

user avatarGiorgi Kostiuk

18 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.