Hype flows 8.5% because the liquidation of whales causes $ 4 million | CUOS Media

A massive liquidation event involving an ETH position of $ 340 million in a whale sent shock waves via the hyperliquid, resulting in a price drop of 8.5% for its indigenous media threshing token.

The repercussions also left the Vault HLP of the platform with a loss of $ 4 million, arousing concerns among the merchants and investors that it could have been the victim of the pirates.

What happened?

Although there have been rumors that a potential feat or vulnerability may have led to liquidation, hyperliquid clarified that the event came from a retirement of margin which had reduced the guarantees of the merchant below the maintenance levels.

According to EmbellishThe whale in question used a high lever effect to build a long position involving 175,000 ETH worth around 340 million dollars. Later, they withdrew $ 17.09 million in margin, reducing their warranty, triggering the liquidation event and causing a loss cascade.

The Vault HLP, which serves as a safety net for the protocol, absorbed the position at $ 1,915 per ETH, but the liquidation size led to a deficit of $ 4 million. In response, the platform said it would change its risk settings to limit similar incidents to the future.

The maximum leverage limits for Bitcoin will be updated at 40x of 50x while Ethereum will now be 25x of 33x to “provide a better stamp for the liquidations of backstop of larger positions”.

Despite the reverse, Hyperliquid said that the Vault HLP still has a profit of $ 60 million. The protocol has also recently expanded its ecosystem, launching Hyperevm, a layer of intelligent contract execution designed to improve features within the network.

Market impact

The hyperliquid governance token, the media threshing, was not left unscathed by the drama. Shortly after the event, its price went from $ 14.04 to $ 12.84, a drop of 8.5% in less than half an hour. However, it quickly recovered, dating back to $ 13.36.

The current price is still 3.2% lower than its level of 24 hours ago. The token is also in red over different periods, with the worst losses recorded over 30 days, at more than 44%. In addition, its 24.3% dive in last week means that the mixing media underforms both the larger cryptography market and the platforms of similar intelligent contracts, which are down 10.10% and 7.40%, respectively.