The infamous trader known as the 'Hyperliquid whale' has opened a new long position of 47,253 ETH with 20x leverage, emerging from a month of inactivity following a sharp drop in Ethereum prices.
How the Whale Capitalized on the ETH Price Drop
The trader got back into action after a significant decline in Ethereum prices, opening a position with an entry price of $1,459 and a liquidation price of $1,391. At the time of opening, the position was valued at approximately $70.86 million.
The History of the Hyperliquid Whale
The trader earned the nickname 'Hyperliquid whale' after opening a long position of 175,000 ETH with 50x leverage on March 12. This position was valued around $340 million and nearly caused a market crash on the platform. After closing 15,000 ETH, the trader withdrew 17.09 million USDC, triggering an automatic liquidation of the remaining 160,000 ETH.
Consequences and Future Changes on the Hyperliquid Platform
Following the massive liquidation, Hyperliquid suffered over $4 million in losses, though the whale managed to secure a net profit of around $1.8 million. Consequently, Hyperliquid announced it would reduce its maximum leverage for BTC and ETH to 40x and 25x, respectively, to prevent a repeat of similar incidents.
The return of the Hyperliquid whale underscores the volatility of the cryptocurrency market and the risks associated with high leverage. The platform continues to adapt to changing market conditions, which may affect the future behavior of traders.
