EddieJayonCrypto
12 Mar 25
Hyperliquid reported a $4 million loss in its Liquidity Provider (HLP) vaults within 24 hours due to a major liquidation event involving a high-risk trader. The event caused Hyperliquid's HYPE token to drop over 3% in the past 24 hours. The largest decentralized perpetual exchange by trading volume,...
Hyperliquid reported a $4 million loss in its Liquidity Provider (HLP) vaults within 24 hours due to a major liquidation event involving a high-risk trader. The event caused Hyperliquid's HYPE token to drop over 3% in the past 24 hours. The largest decentralized perpetual exchange by trading volume, Hyperliquid, confirmed that a trader using the wallet address 0xf3f4 held a large Ethereum (ETH) long position, leading to large-scale liquidations. Despite the trader closing with a profit of around $1.8 million, the event had a negative impact on HLP, resulting in the $4 million loss. Hyperliquid emphasized that HLP is not a risk-free strategy, with the vault maintaining a historical net profit of approximately $60 million. The vaults have recorded a negative annualized return of 34%, prompting Hyperliquid to update max leverage for BTC and ETH to 40x and 25x, respectively, to increase maintenance margin requirements for larger positions.
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