The notorious ‘Hyperliquid 50x whale’ is back in action with a newly formed long position of 47,253 ETH leveraged at 20x. The trader has gained a profit of nearly $2 million.
After a month of inactivity, the trader took advantage of the sharp decline in Ethereum (ETH) prices by opening a long position with 20x leverage on Hyperliquid. The position consisted of 47,253 ETH, worth approximately $70.86 million with an entry price of $1,459 and a liquidation price of $1,391.
Most recently, the whale closed its ETH long position on April 7 at around 11:00 AM UTC and made a profit of $1.87 million after withdrawing $6.3 million back to Arbitrum (ARB). On-chain data showed that the whale‘s long position accumulated profit reached a peak of $4.52 million, before retracting within a few hours.
According to data from crypto.news, Ethereum has gone down by nearly 17% in the past 24 hours. ETH is currently trading hands at $1,487. This is the first time Ethereum has fallen below the $1,500 threshold since March 2023. Its market cap went down by more than 18% following the price drop.
The origins of the Hyperliquid 50x ETH whale
The anonymous trader earned the nickname “Hyperliquid 50x ETH whale” after it opened a long position of 175,000 ETH with 50x leverage on March 12. The position was valued around $340 million and almost sparked a market crash on the liquidity platform.
After closing at 15,000 ETH, the whale transferred around 17.09 million USDC in margin back to their address. After the margin was withdrawn, it triggered the platform to automatically liquidate the remaining 160,000 ETH.
Due to large liquidation size, Hyperliquid vault took over the position at $1,915 and tried to unravel it. As a result, Hyperliquid took on the brunt of the liquidation and suffered a loss of more than $4 million.
Even after the massive liquidation, the whale still managed to secure a net profit of around $1.8 million. To prevent a repeat of the incident, Hyperliquid announced that it would be lowering its BTC (BTC) and ETH maximum leverage to 40x and 25x respectively.
