Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Hyperliquid will adjust leverage limits for BTC and ETH after the recent 50X ETH liquidation event

Hyperliquid will adjust leverage limits for BTC and ETH after the recent 50X ETH liquidation event

Crypto.NewsCrypto.News2025/03/11 16:00
By:By Darya NassedkinaEdited by Dorian Batycka

After the recent ETH liquidation event, which caused $4 million loss to Hyperliquid’s Hyperliquidity Provider vault, the platform said it will increase the maximum leverage allowed for Bitcoin and Ethereum trading to prevent similar incidents in the future.

In the said liquidation event, a whale had built a 50X leveraged long position on Ethereum ( ETH ) that reached 160,234 ETH. However, when the market moved against them, effectively causing liquidation, the user was still able to withdraw 17.09 million USD Coin ( USDC ), exiting in profit before the liquidation was executed on the Hyperliquid platform .

The HLP vault, which is designed to act as a backstop, absorbed the $4 million loss (about 1% of the vault’s TVL of $451 million) from this liquidation. Hyperliquidity Provider vault or HLP is like a shared pot of money where people deposit funds (in USDC) to earn profits (or incur losses)—proportional to their stake—resulting from Hyperliquid’s trading activities.

Speculation sparked that the user somehow manipulated the HLP to their advantage by withdrawing equity from the HLP vault in a way that triggered auto-liquidation event with the HLP taking the opposing position on the trade.

However, Hyperliquid recently addressed the incident on X , reassuring users there was no exploit or hack. The platform claimed that their liquidation engine simply couldn’t handle the size of the user’s position. The platform also said that they will increase max leverage for Bitcoin ( BTC ) and Ethereum to 40X and 25X respectively to increase maintenance margin requirements for larger positions.

Regarding commentary and questions on the 0xf3f4 user's ETH long:

To be clear: There was no protocol exploit or hack.

This user had unrealized PNL, withdrew, which lowered their margin, and was liquidated. They ended with ~$1.8M in PNL. HLP lost ~$4M over the past 24h. HLP's…

— Hyperliquid (@HyperliquidX) March 12, 2025
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!