HYPE whale shorted 1.875M using 5x leverage, resulting in a $23.52M loss over 23 days.
A total of $30.5M USDC was deposited into Hyperliquid to sustain the position before it was closed.
Following the trade's closure, the trader's account balance dropped to $6.98M, down 77% from the initial capital.
A major trader recently closed a high-leverage short position on $HYPE, resulting in a staggering $23.52 million loss. According to Spot On Chain post on X, the investor, who shorted 1.875 million $HYPE tokens with a 5x leverage, exited the trade after 23 days of heavy losses. Over that time, they deposited $30.5 million in USDC to maintain the position. Following $HYPE’s sharp upward movement, the position could no longer be sustained, leading to its closure.
https://twitter.com/spotonchain/status/1925766828036358569 High-Leverage Position Amplifies Losses
The initial trade involved shorting $HYPE tokens valued at $57.14 million. Using 5x leverage, the trader aimed to profit from a price drop. Instead, the market moved against the position, increasing the token’s value significantly. To maintain the position, the trader added capital multiple times. Over the course of 23 days, the whale deposited a total of $30.5 million in USDC into the Hyperliquid platform.
The rise in $HYPE’s price forced the trader to close the position. The closure resulted in a recorded loss of $23.52 million, equivalent to 77% of the capital used in the trade. The account now holds only $6.98 million in USDC. The short was opened over three weeks ago. From the start, the market trend worked against the trader’s bet. Instead of falling, the value of $HYPE began to climb.
The increase in price meant the leveraged position was at constant risk of liquidation. To avoid this, the investor continued to add funds to the account. Each deposit provided more margin and delayed forced closure. However, the token’s continued price rise made the position unsustainable. After weeks of defending the short, the investor finally closed the trade and took the loss.
Impact on Account Balance
Before the trade, the account was capitalized with significantly more funds. After closing the position, only $6.98 million remained in the account. This represents a dramatic reduction in available capital for future trading. The majority of the deposited USDC was used to cover the shortfall from the trade. The final balance confirms the scale of the loss. Nearly $24 million in unrealized losses were realized upon the closure of the short position.The high-risk short position on $HYPE ended in a major financial setback for the trader. The loss highlights the danger of leveraged positions in volatile markets. The trade, managed through Hyperliquid, is one of the largest recorded losses in recent activity. No information is currently available about future moves by the same trader.
