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5lubinbing
@5lubinbing
Let me explain how Hyperliquid works: He kept buying ETH. Because his previous transactions were so successful, it led to FOMO in the market, and other market makers also followed suit to increase or close positions, further pushing up the price of ETH. He then used the profits to continue to increase his positions, while withdrawing floating profits to reduce margin usage. This is equivalent to a circular leverage strategy: pledge ETH to borrow USDT, then buy ETH to push up the price, and then borrow more USDT, in an infinite cycle. For the big brother, the profit withdrawn is greater than the deposited margin, which is his profit model. He deposited a total of 15 million US dollars today and withdrew 17 million US dollars, with a net profit of 2 million US dollars.
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5lubinbing
@5lubinbing
Finally, when he withdrew enough profits, his huge ETH was liquidated, leaving a pile of bad debts to be swept away by Hyperliquid's liquidation mechanism. Judging from the position data, this order was eventually taken over by HLP, and the loss has reached nearly 3 million US dollars so far. This is why many exchanges have restrictions on large leverage orders and do not allow the arbitrary withdrawal of floating profits. Why do I know so much? Because I am one of the HLP holders, and today this loophole... I also bought it 🥲
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5lubinbing
@5lubinbing
It’s very professional. Everyone in the group is posting this. Can we add more positions $HYPE ? Hyperliquid has issued an announcement.
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