Whale Outsmarts HyperLiquid 👍 

🔸 A whale just pulled off a masterful move on HyperLiquid.
https://x.com/DU09BTC/status/1899852622917677099
🟠  Yesterday, the whale gradually built a $290M long position on ETH with 50x leverage on HyperLiquid.
🟠  Instead of closing the position, they withdrew all collateral, triggering forced liquidation.
🟠  The position was transferred to HyperLiquid’s liquidity provider (HLP), which started selling ETH into the order book.

💡 The twist?
There wasn’t enough liquidity, and HLP lost $4M during the sell-off.
Meanwhile, the whale pocketed $1.86M because liquidation occurred above their entry price.

🔸 HyperLiquid’s response:

Reduced max leverage limits to prevent similar exploits.
https://x.com/HyperliquidX/status/1899768864705237211?t=su_CIFyMz5wGK5_3CIGG8w&s=35
Due to FUD, users withdrew $166M from the protocol in just 24 hours.
https://x.com/WuBlockchain/status/1900072132425683080

A Hyperliquid ETH trader nuked the HLP vault by $4 mil in minutes and erased 30 days of profits. 

🚨  What happened? A long post.

1. Whale opened a 20x long position on ETH worth $290 mil with $14.5 mil as collateral.

2. To book profits, the trader removed collateral instead… https://t.co/c9KP2pcJIM

Duo Nine ⚡ YCC

Regarding commentary and questions on the 0xf3f4 user's ETH long:

To be clear: There was no protocol exploit or hack. 

This user had unrealized PNL, withdrew, which lowered their margin, and was liquidated. They ended with ~$1.8M in PNL. HLP lost ~$4M over the past 24h. HLP's…