Hyperliquid reported a loss of $ 4 million in its liquidity boxes (HLP) within 24 hours.
According to a position on March 12 on X, the loss followed a major liquidation event involving a high -risk merchant.
After the news, the hyperliquid media threshing token responded negatively to the event, lowering more than 3% in the last 24 hours. The token reached a hollow of $ 12.80 before bouncing slightly at $ 13.90 from press time.
The hyperliquid is the largest perpetual exchange decentralized by commercial volume, controlling more than 64% of the market.
What happened?
The protocol said that a merchant using the 0xF3F4 portfolio address held a great position from Ethereum (ETH).
Embercn chain analyst said that the whale had opened a long -effective position of 50x of 175,000 ETH, valued at around $ 340 million.
However, the merchant later closed part of the position, withdrawing $ 17.09 million USDC. This decision reduced the margin on the position of 160,000 ETH remaining, leading to large -scale liquidations.
Hyperliquid confirmed the development, but noted that the merchant had still managed to close with a profit of around 1.8 million dollars. However, the event had a negative impact on the HLP, which experienced a loss of $ 4 million during the reference period.
Hyperliquid pointed out that HLP is not a risk-free strategy, although the safe is maintained a historic net profit of around 60 million dollars.
HLP acts as a community liquidity chest in the hyperliquid ecosystem. It supports marketing and liquidation strategies, allowing users to set up USDC in exchange on the one hand of the profits or losses of the platform.
This model provides institutional level negotiation strategies to retail users, generating income through negotiation costs, financing rates and liquidations. At the time of the press, the strong boxes recorded a negative annualized return of 34%.
After this event, Hyperliquid said:
“The maximum lever effect will be updated for BTC and ETH at 40x and 25x respectively to increase maintenance margin requirements for more important positions. This will provide a better stamp for backstop liquidations of larger positions. »»
