Hyperliquid Trader Loses $26M As Ether Short Unwinds In Seconds
A whale trading from the ENS address pension-usdt.eth was liquidated on Hyperliquid after a 50,000 ETH short, worth about $108 million, unraveled in just 12 seconds. As Ether’s price spiked, the position was force-closed between 04:51:03 and 04:51:15 UTC, leaving about $26.66 million in losses. Hyperliquid’s insurance and backstop fund absorbed the remaining 1,417 ETH. This was a leverage event, not an Ethereum network problem or a Hyperliquid protocol failure. It highlights how quickly large leveraged positions can flip into forced buying, adding fuel to a move and exposing hidden risk in crypto derivatives. The event also shows Hyperliquid’s growing role as a major on-chain perpetuals venue, where liquidations are visible in real time. Key follow-up signals are funding rates, open interest, and spot volume to see whether this was an isolated liquidation or part of a broader short squeeze.
