Ether Whale Loses $44 Million After Full Liquidation on Hyperliquid

Ether whale liquidated for 56,667 ETH

On November 8, two accounts on the Hyperliquid exchange lost their remaining long position of approximately 56,667 Ether (ETH). A long position is a trade where someone bets that the price of an asset will increase. The liquidation marks the end of a large leveraged bet on rising prices for a trader who has experienced massive losses over time.

Liquidation occurs when an exchange, like Hyperliquid ( a decentralized platform for trading crypto), forcibly closes a trader's position. This happens when the trader no longer has enough collateral to cover the potential losses of their trade. According to tracking data, these two accounts now show combined lifetime losses of about $44.8 million.

Key details of the trade

• The trader originally held a much larger position of 93,184 ETH.
• On October 29, the trader closed 36,517 ETH of that position to try and avoid being liquidated.
• The remaining 56,667 ETH position has now been fully wiped out.
• The total lifetime loss of $44.8 million is an overall measure of the account history, not just the result of this single final event.

Records from the Hyperliquid exchange

Public records from the exchange show that the liquidation was triggered as the price of Ether reached specific warning levels. While the estimated liquidation prices were previously set around $2,122 and $2,129, the actual market price recorded during the liquidation was approximately $2,125.70.

The exchange first tried to close the positions through its standard order book, which is a digital list of buy and sell orders. When that was not enough to cover the requirements, the remaining assets were transferred to a liquidator vault. The records show that about 15,623 ETH were closed through the order book, followed by a final transfer of 41,044 ETH to the liquidator.

How the liquidation process occurred

Hyperliquid uses specific rules to decide when to close a trader's position. This happens when the value of the account falls below a certain maintenance requirement. The exchange uses a "mark price," which is a price calculated by looking at both its own internal trades and prices from other external crypto exchanges.

The final execution prices for these trades varied. The records show the positions were filled at prices ranging from $2,055.62 to $2,109.82. Currently, the tracked accounts show no open positions for perpetuals, which are a type of crypto contract that allows traders to hold a position for as long as they want without an expiration date.

Sources

• The Defiant