Hyperliquid reported a loss of $ 4 million in a liquidity provider (HLP) safe within 24 hours.
According to X’s March 12 post, the loss followed a major liquidation event related to high -risk merchants.
Following the news, Hyperliquid’s over -advertising tokens have fallen more than 3% over the last 24 hours. The token reached the lowest level of $ 12.80 before rebounding at $ 13.90 for Press Time.
Hyperklicade is the largest distributed permanent exchange through trading volume, controlling more than 64% of the market.
What is it?
The protocol says a trader using a wallet address 0xf3f4 has a large Etherrium (ETH) long position.
All chain analyst EMBERCN has reported that it has opened a 50 -fold leverage of 175,000 ETH, which costs about $ 330 million.
But the merchant later finished some positions and withdrew $ 17.9 million. This movement led to a large -scale liquidation by reducing the remaining 160,000 ETH margin.
Hyperliquid has confirmed the development, but the trader still mentioned that it can still be closed with a $ 1.8 million profit. But the event had a negative impact on HLP, which lost $ 4 million during the report.
Hyperliquid emphasized that HLP is not a risk strategy, but the safe maintains a historical net profit of about $ 60 million.
HLP serves as a community -centered liquidity safe within the ecosystem of Hyperliquid. It supports market production and liquidation strategies, allowing users to steak USDC in return for the platform’s benefits or losses.
This model provides retailers with a trading strategy at the institution, generating profits through trading fees, financing fees and liquidation. Prestime Currently, Vaults has a negative annual return of 34%.
Following this incident, Hyper Ricquid said:
“Max Leverage is updated to 40X and 25X for BTC and ETH, respectively, increasing maintenance margin requirements for larger positions. This will provide a better buffer for the larger backstop liquidation. ”
