A whale using the ENS-linked address pension-usdt.eth was liquidated on Hyperliquid after a 50,000 ETH short position worth approximately $108 million in notional exposure unraveled in just 12 seconds. The trader reported a loss of $26.66 million while Hyperliquid’s backstop fund absorbed the remaining 1,417 ETH. The event occurred between 04:51:03 and 04:51:15 UTC. It was not an issue with the Ethereum network nor a malfunction of Hyperliquid, but a classic margin insufficiency liquidation. This rapid unwind illustrates the extreme risks associated with leverage on decentralized derivatives markets.
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