Onchain analytics platform Onchain Lens has tracked a whale who suffered a $2.047 million loss closing a HYPE long position. Immediately afterward, the same address opened a 682 BTC short with 40x leverage.
The leveraged Bitcoin short quickly moved against the trader, posting an unrealized loss of over $680,000. Combined with the realized HYPE loss, the total blow exceeds $2.7 million in a very short period.
HYPE is the native token of the Hyperliquid decentralized exchange, recently volatile. A 40x leverage ratio means that a mere 2.5% adverse price swing can trigger a forced liquidation, wiping out the position’s margin. Such on-chain transparency provides a stark illustration of the dangers of extreme leverage.
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