The infamous ‘Hyperliquid 50x whale’ has returned with a newly established long position of 47,253 ETH, leveraging it at 20x. The trader has accrued profits nearing $2 million.
After a month without trading, this investor capitalized on the significant drop in Ethereum (ETH) prices by initiating a long position with 20x leverage on Hyperliquid. The position, consisting of 47,253 ETH, is valued at around $70.86 million with an entry price of $1,459 and a liquidation threshold set at $1,391.
Most recently, the whale closed the ETH long position on April 7 around 11:00 AM UTC, netting a profit of $1.87 million while withdrawing $6.3 million back to Arbitrum (ARB). On-chain information revealed that the whale’s long position had reached a maximum profit of $4.52 million before declining within a matter of hours.
Recent data indicates that Ethereum has dropped by nearly 17% in the last 24 hours. Currently, ETH is trading at $1,487, marking the first occurrence of Ethereum dropping below the $1,500 mark since March 2023. The market cap has also decreased by more than 18% following this price dip.
The rise of the Hyperliquid 50x ETH whale
The mysterious trader gained the title “Hyperliquid 50x ETH whale” after initiating a substantial long position of 175,000 ETH at 50x leverage on March 12, which was valued at approximately $340 million and nearly caused a market disruption on the trading platform.
After closing out at 15,000 ETH, the whale transferred around 17.09 million USDC back to their own address. This margin withdrawal triggered an automatic liquidation of the remaining 160,000 ETH by the platform.
Due to the extensive size of the liquidation, the Hyperliquid vault assumed control of the position at $1,915 and attempted to unwind it. Consequently, Hyperliquid bore the majority of the liquidation burden and suffered a loss exceeding $4 million.
Despite the significant liquidation, the whale still managed to secure a net profit of about $1.8 million. In response to prevent such occurrences in the future, it was announced that Hyperliquid would reduce the maximum leverage for BTC and ETH to 40x and 25x respectively.