• Hyperliquid whale liquidation: A trader linked to the platform’s second-largest losing position realized $10.68 million in losses from BTC and ETH longs.

• On-chain data reveals partial liquidations, with floating losses exceeding $6 million initially reported.

• Another whale, Machi Big Brother, faced 71 liquidations on Hyperliquid since November, totaling significant drawdowns including a recent $250,000 USDC deposit wiped out instantly.

Discover Hyperliquid whale liquidation details: Major losses from ETH longs amid crypto volatility. Explore on-chain insights and market trends for informed trading strategies. Stay updated on crypto whale activities today.

What is the Hyperliquid whale liquidation event?

Hyperliquid whale liquidation refers to the forced closure of highly leveraged trading positions on the Hyperliquid decentralized perpetual futures exchange, where traders using borrowed funds face automatic sell-offs if market prices move against them, resulting in substantial losses. In this case, a prominent whale associated with the platform’s second-largest losing address closed its long positions in Bitcoin and Ethereum, realizing a total loss of $10.68 million. The trader then pivoted to a short position on Ethereum with 6x leverage, signaling a bearish outlook amid challenging market conditions.

How did the Ethereum long position lead to over $10 million in losses?

The whale’s Ethereum long position on Hyperliquid, initially leveraged at 6x, faced partial liquidation as Ethereum prices declined, leading to an immediate $4.07 million loss according to on-chain data from blockchain explorer Onchain Lens. The remaining position carried a floating loss of over $6 million at the time, which was later realized upon full closure, bringing the total Ethereum-related loss to $10.28 million. This event underscores the high risks of leveraged trading in volatile assets like Ethereum, where even small price swings can trigger cascading liquidations. Supporting data from similar on-chain reports shows that such positions often amplify gains during uptrends but magnify losses in downturns, with Hyperliquid’s leverage options up to 50x contributing to the severity. Expert analysts, including those from CryptoQuant, note that these liquidations reflect broader market sentiment, where over $1 billion in crypto derivatives have been liquidated across exchanges this month alone.

The 2nd top loser on $ETH long on #HyperLiquid had its $ETH (6x) long position partially liquidated, losing $4.07M. The whale is still holding the position with a floating loss of over $6M.

— Onchain Lens (November 20, 2025)

Separately, another wallet tracked by blockchain explorer Lookonchain closed positions in Ethereum and Bitcoin, booking a $6.2 million loss before initiating a 2x leveraged short on Ethereum valued at around $60.4 million, equivalent to 20,000 ETH. These actions illustrate a pattern of traders adjusting strategies in response to persistent downward pressure in the crypto market, often referred to as the ongoing crypto winter. Onchain Lens further highlighted a trader known as Machi Big Brother, who deposited $250,000 worth of USDC into Hyperliquid and opened a 25x leveraged long on Ethereum, only to be liquidated almost immediately. This followed a similar fate the previous day, contributing to Machi Big Brother’s cumulative losses exceeding $19.7 million. Onchain Lens remarked that the trader’s repeated attempts might indicate a pattern of high-risk behavior solely aimed at testing liquidation thresholds.

Presenting the Top 3 Most-Liquidated Degens on Hyperliquid since Nov 1:

🥇 Machi Big Brother (@machibigbrother) — 71 liquidations

🥈 James Wynn (@JamesWynnReal) — 26 liquidations

🥉 Andrew Tate (@Cobratate) — 19 liquidations

— Lookonchain (November 19, 2025)

Lookonchain identified Machi Big Brother as the most frequently liquidated trader on Hyperliquid, with 71 instances since early November. Ranking second was James Wynn, a prominent cryptocurrency trader with nearly 500,000 followers on social media, who endured 26 liquidations. Third place went to social media personality Andrew Tate with 19 liquidations. Historical data from Onchain Lens indicates James Wynn suffered a complete liquidation on September 5 after a 25x leveraged Ethereum long, resulting in a $10,025 loss. Andrew Tate experienced liquidation on November 18 from a Bitcoin holding, losing $112,000. These cases demonstrate the perils of aggressive leverage in a bearish market, where platforms like Hyperliquid see heightened activity from high-profile traders seeking outsized returns.

Frequently Asked
Questions

What causes Hyperliquid whale liquidations in crypto trading?

Hyperliquid whale liquidations occur when leveraged positions fall below the maintenance margin due to adverse price movements in assets like Ethereum or Bitcoin, triggering automated closures to prevent further losses. In the recent event, a whale’s 6x long on ETH was partially liquidated amid a price drop, leading to $4.07 million in immediate losses, with the rest realized later for a total of over $10 million, as reported by Onchain Lens.

How are major Bitcoin holders like Owen Gunden impacting the market?

Major Bitcoin holders like Owen Gunden are exiting large positions, such as his $1.3 billion portfolio transfer to Kraken exchange, which coincides with rising institutional interest in spot Bitcoin ETFs and reflects a shift from individual to institutional custody. This on-chain activity, involving transfers like 2,499 BTC worth $228 million, may increase short-term volatility as long-term holders realize profits during bull market phases.

Key Takeaways

• High leverage amplifies risks: Traders on Hyperliquid using 6x to 25x leverage, like the whale losing $10.68 million on ETH longs, face rapid liquidations in volatile conditions.
• Pattern of frequent liquidations: Machi Big Brother’s 71 liquidations since November highlight the dangers of repeated high-risk trades on decentralized exchanges.
• Shifting whale behaviors: Exits by figures like Owen Gunden, selling $1.3 billion in BTC, signal caution for investors amid shrinking demand from long-term holders.

Conclusion

The Hyperliquid whale liquidation events, including the $10.68 million loss on Ethereum longs and Machi Big Brother’s extensive drawdowns, underscore the intense volatility in the crypto market as of late 2025. Coupled with Bitcoin whale Owen Gunden’s $1.3 billion portfolio exit, these developments point to a cautious landscape where long-term holders are reducing exposure while institutions gain ground. As on-chain data from explorers like Onchain Lens and Lookonchain continues to reveal shifting sentiments, traders should prioritize risk management and monitor leverage closely to navigate future opportunities effectively.

In parallel, Owen Gunden, an early Bitcoin adopter ranked as the eighth-largest crypto holder by blockchain analytics, has fully liquidated his approximately $1.3 billion Bitcoin portfolio. This move aligns with increased institutional inflows into spot Bitcoin exchange-traded funds, indicating a broader transition from self-custodied holdings to regulated investment vehicles. Gunden, active since the Mt. Gox days, has been methodically transferring assets to the Kraken exchange, with the final batch of 2,499 BTC—valued at $228 million—marking the end of his holdings.

This exit mirrors a trend among long-term Bitcoin holders, defined as those retaining assets for over 155 days, who began offloading in October. According to insights from Julio Moreno, head of research at CryptoQuant, such profit-taking is typical in bull markets when prices hit new peaks, yet the current lack of offsetting demand raises concerns. On-chain metrics show Gunden accumulated Bitcoin steadily over the past decade, making his departure a notable on-chain signal that could influence market volatility. As institutional participation grows, individual whales like Gunden are adapting to the evolving ecosystem, potentially stabilizing prices through diversified custody but also introducing short-term selling pressure.