On March 12th, Hyperliquid issued a statement via social media addressing the recent developments concerning the ‘Hyperliquid 50x Leveraged Whale’ (user 0xf3f4) and their long position in Ethereum. The platform clarified that no protocol vulnerabilities or hacks were involved in the incident, emphasizing that the user experienced a withdrawal that subsequently reduced their margin, leading to liquidation.
The outcome of these trades saw the user net an impressive profit approximating $1.8 million, while HLP faced losses nearing $4 million in the last 24 hours. Despite this setback, it’s noteworthy that HLP’s cumulative historical PNL remains around $60 million. It is critical for traders to recognize that HLP is not a foolproof strategy.
To mitigate risks associated with large positions, Hyperliquid plans to revise their maintenance margin requirements, setting new maximum leverage limits for Bitcoin at 40x and for Ethereum at 25x. This adjustment aims to enhance protective measures against liquidation events for significant holdings.