The liquidation of an over $ 200 million -long trade on Ether (ETH) leads to a loss of $ 4 million for Hyperliquid, where the “whale” placed the effort.

The liquidation saw the wallet ‘0xf3f4’, which opened a strong gear 50x long ETH position, depositing $ 4.3 million USDC as a margin for a total size of 113,000 ETH.

The wallet then started by withdrawing money, reducing the margin under maintenance requirements in one step that resulted in a $ 1.8 million profit for the user, but a loss of $ 4 million for Hyperliquid’s Hyperliquid Provider (HLP) Vault.

Vaults is a blockchain-based product at Hyperliquid where users can deposit USDC to potentially earn part of the profits generated by trading strategies for other users or Vault’s owner.

The movements created speculation among Hyperliquid users of a possible utilization of the platform, a rumor it turned off in an X -post.

“There was no protocol utilization or hack,” Hyperliquid said. “This user had unrealized PNL, withdrew, lowering their margin and was liquidated. They ended up with ~ $ 1.8 million. In Pnl. HLP lost ~ $ 4m during the last 24th HLPS PNL time until constantly stays on ~ $ 60m. As a reminder, HLP is not a risk -free strategy. “

Hyperliquid added that it will update the maximum leverage for Bitcoin (BTC) and ETH to 40x and 25x to increase the maintenance marginal requirements for larger positions as a preventive measure for similar features in the future.

Hyperliquids HLP Vault still has a profit at all times of $ 60 million, data shows. Meanwhile, the platform’s hype-token dropped from $ 14 to under $ 13 in a knee-ridden after the liquidation, although it has since regained the short slide from late Asian hours.