ETH Faces Turbulence: Hyperliquid Treasury Suffers $4 Million Loss from 50x Leveraged Whale Liquidation

The latest updates from COINOTAG News reveal that the **Hyperliquid Treasury**, recognized as a significant **liquidity provider**, has faced a sudden fiscal downturn exceeding **$4 million**. This distressing development can be attributed to the **forced liquidation** of a substantial **160,000 ETH** long position, valued at approximately **$306 million**. Executed at a price of **$1,915**, this liquidation event was primarily driven by a **50x leveraged whale**, whose high stakes triggered the forced closure of their position. As the liquidation proceeded, the precarious nature of the market meant that further depreciation in **ETH** values would escalate losses, ultimately impacting the **Hyperliquid Treasury** significantly. The treasury has inadvertently absorbed these losses, highlighting the volatile dynamics of leveraged trading in the crypto space. This incident underlines the importance of **risk management** and due diligence for participants operating within such a **volatile environment**.