#BTC #ETH

Many people are curious about why Hyperliquid did not liquidate James's large Pepe long position before he reduced his holdings, even though the price of Bitcoin clearly reached its liquidation price (176);

There are two reasons:

1: The exchange's liquidators need to assess the current market liquidity before liquidating. If someone's position is large enough, like James's 700 million long position, the liquidators will not immediately liquidate at the liquidation price; otherwise, it would create a significant spike, which could lead to a liquidation cascade. Generally, they will give large traders a bit of breathing room;

2: Liquidation is calculated based on the mark price. The mark price can relatively well avoid errors caused by spikes, and there will be a queue for liquidation orders; the large trader's position may be about to enter or has already entered the liquidation queue;

Interestingly, on the edge of this large trader's liquidation, Bitcoin suddenly surged by 1200 points. I believe this was not James buying spot to save himself, but rather a significant amount of smart money betting that there would be an upward spike after James's liquidation, leading to a rush to buy.