Hyperunit Whale Loses $250M on Leveraged ETH Long; Hyperliquid Account Drained
The Hyperunit whale — a trader linked on-chain to Garrett Jin — suffered a near-total wipeout after a leveraged Ether (ETH) long on Hyperliquid collapsed, realizing an estimated $250 million loss. The account on Hyperliquid was reduced to just $53 after the position closed during a sharp Ether price drop in late January 2026, when ETH fell roughly 10% in 24 hours toward $2,400. Arkham Intelligence and on-chain data show the trader’s peak ETH long exceeded $730 million and combined exposure across ETH, SOL and BTC topped about $900 million. Despite the liquidation, Arkham data indicates the broader entity still holds roughly $2.7 billion in other crypto wallets. The event highlights the extreme tail risk of concentrated, highly leveraged positions and renewed market focus on margin management, liquidity and funding rates amid elevated volatility and macro uncertainty.
Bearish
A $250M liquidation of a concentrated leveraged ETH long is bearish for short- to medium-term market sentiment. Large wipeouts increase short-term selling pressure, raise fears of further forced liquidations, and can tighten liquidity and widen spreads on derivatives platforms. The event also refocuses traders on risk management measures (margin, position sizing, funding rates), likely reducing appetite for aggressive leverage and concentrated directional bets. Historically, similar high-profile liquidations (e.g., 2020–2022 liquidation cascades) coincided with elevated volatility and short-term price weakness as counterparties unwind positions and delever. However, the broader entity reportedly still holds ~$2.7B in other assets, which tempers systemic contagion risk; long-term fundamentals for ETH remain tied to network adoption and macro factors. Overall, expect immediate increased volatility and cautious positioning (bearish near term), but no guaranteed long-term price direction solely from this incident.