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How Did the Trader Perform? Profit or Loss?
On March 12, 2025, an anonymous trader (wallet "0xf3f4") opened a long ETH position worth over $300 million on Hyperliquid.
What’s interesting is that the trader only used $15.23 million USDC as capital, meaning they were leveraging between 13.5x and 19.2x—an extremely high-risk move.
👀 If you don’t trade Futures, you might not fully grasp the risk level here, but in this market, running a 3x on leverage can already get you liquidated in no time.
At one point, as ETH pumped, this trader was sitting on a potential $8 million profit. However, when ETH dropped to $1,839, their position got liquidated.
🤑 Luckily, before that happened, they had already closed 15,000 ETH and withdrawn $17.09 million USDC, securing a realized profit of $1.86 million.
But the real question is: Why did Hyperliquid take a $4 million loss? 🤔 1 reply
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Why Did Hyperliquid Lose $4 Million?
Let’s break it down—ETH price dropped, causing long traders to get liquidated 🔻
Step 1:
A trader closed a 15,000 ETH position, reducing their collateral. This pushed their liquidation price up to $1,839/ETH.
Step 2:
When ETH hit the liquidation price, Hyperliquid’s liquidity wasn’t enough to absorb the massive liquidation.
Step 3:
To keep the platform running, the HLP Vault had to step in, buying 160,234 ETH at $1,839/ETH (~$286M) to stabilize the system.
Step 4:
As ETH dropped further to $1,814/ETH due to liquidation-driven sell pressure, the fund took a loss of $25 per ETH.
Final Loss Calculation:
160,234 ETH × $25/ETH = $4 million 💸—a loss distributed among HLP Vault participants. 1 reply
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How Did a Trader Profit While Hyperliquid Lost $4 Million?
The real drama here? Rumors say this trader didn’t just walk away with $1.86 million—they might have made even more by exploiting a vulnerability in Hyperliquid.
📌 Here’s how they pulled it off:
(1) Long on Hyperliquid:
Bought 175,000 ETH at $1,884.4/ETH
Sold 15,000 ETH at $1,930/ETH
Withdrew $17.09M USDC, locking in $1.86M profit
(2) Liquidation Play:
160,234 ETH got liquidated at $1,839/ETH
Price dropped further to $1,814/ETH
HLP Vault took a $4M loss
(3) External Short:
Shorted 100,000 ETH at $1,839/ETH
Closed at $1,814/ETH
$2.5M profit
Final Profit Breakdown:
Long: $1.86M
Short: $2.5M
Total: $4.36M
Meanwhile, HLP Vault’s $4M loss became the “bridge” that helped the trader maximize profits—it reflects the sell pressure they capitalized on. 1 reply
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