Hyperliquid Whale Liquidation Wipes Out $44M
An anonymous whale on Hyperliquid used 5–8× leverage across BTC, ETH and SOL trades starting October 14, amassing $25.3M profit over 14 consecutive wins by October 28. A market pullback from October 29 led to $15.8M in losses by November 4 as the trader hedged winning positions but doubled down on losing longs. Ignoring risk controls, the whale added leverage at positions just 8% above liquidation prices during ETH and SOL dips, triggering a forced liquidation on November 5. The whale liquidation wiped out $44.7M in profit and capital, leaving only $1.4M collateral. This whale liquidation underscores the high stakes of leveraged trading and the critical need for strict risk management to navigate volatile crypto markets, as sharp price swings and liquidity crunches often follow such events.
Bearish
This whale liquidation is likely bearish for the referenced cryptocurrencies in the short term. The $44.7M forced unwind increases sell-side pressure, potentially driving down BTC, ETH and SOL prices as margin calls cascade and liquidity tightens. Traders may become more cautious with high leverage, reducing bid-side support. In the medium to long term, while fundamentals remain unchanged, this event reinforces the importance of risk management. Heightened volatility can attract short-term speculators but may deter leveraged positions, leading to a more tempered recovery.