Hyperliquid Suffers 1.23 Billion Liquidation As Over 6300 Wallets Face Massive Losses
Hyperliquid witnessed one of the most significant liquidation cascades ever documented in the history of crypto trading. In just one day, over 6,300 wallets experienced substantial losses, amounting to a staggering $1.23 billion in lost trader capital.
In this scenario, more than 1,000 wallets were entirely eliminated as leveraged positions crumbled under the intense pressure of extreme volatility. This event highlights the significant impact that global macroeconomic factors can have, capable of destabilizing even the most liquid exchanges in just a matter of minutes.
Trump Tariff Shock On China Triggers 19 Billion Crypto Market Wipeout In Just 24 Hours
The trigger appeared following the announcement by United States President Donald Trump regarding a 100% tariff on Chinese imports, set to take effect on November 1, 2025. The markets responded swiftly as uncertainty loomed, leading to a pronounced risk-off attitude across equities, commodities, and cryptocurrencies as a whole.
Bitcoin fell below $110,000, and Ether dropped under $3,700, indicating a wider movement of capital away from digital assets in favor of safer investments. The coordinated sell-off wiped out $19 billion from the total market capitalization in just 24 hours, heightening concerns about a potential systemic correction in the crypto space.
Widespread Losses Reported Among Leveraged Traders as Margin Positions Face Forced Liquidation Quickly
Hyperliquid’s internal metrics revealed that over 1,000 accounts experienced losses of at least $100,000 in a single trading session. Approximately 205 wallets experienced individual losses surpassing $1 million as margin calls led to immediate automatic closures across the system.
Experts point to the significant level of devastation as a result of high leverage paired with limited liquidity over the weekend, which intensified the extremes of downward volatility. These elements transformed minor adjustments into liquidation spirals, reminiscent of earlier cycles where cascading losses consistently obliterated overexposed portfolios.
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Hyperliquid Traders Secure $1.69 Billion in Gains as Short Sellers Exploit Market Volatility
Although the majority of participants faced significant losses, a select few short sellers took advantage of the swift decline with remarkable effectiveness. The Hyperliquid leaderboard data shows that the top 100 traders collectively achieved an impressive gain of $1.69 billion by executing well-timed bearish positions with strategic precision.
The standout winner, recognized as wallet 0x5273…065f, amassed over $700 million, while the leading losers together lost a total of $743.5 million. The imbalances underscore the way extreme volatility can swiftly shift market wealth, favoring contrarian traders who are strategically positioned before downturns.
Prominent Traders and Public Figures Were Also Hit Hard, Including Major Influencers Within Crypto Circles
Prominent traders faced the brunt of the market upheaval, with several well-known figures revealing significant multi-million dollar losses. “The White Whale” experienced a decline of $62.5 million, while Jeffrey Huang, also known as Machi Big Brother, faced a loss of $14 million during the crash.
A wave of frustration and disbelief swept across social media as liquidations rapidly wiped out months of hard-earned trading profits. Their experiences highlight the dangers of significant leverage exposure, even for seasoned participants, during unpredictable downturns driven by macroeconomic factors.
Broader Market Data Shows Interconnected Declines Across Indexes, Reflecting Contagion Beyond Crypto Sector Alone
The CoinDesk 20 index experienced a decline of 15%, reflecting sell-offs in equities as global investors prioritized immediate liquidity preservation amid mounting pressure. At the same time, decentralized finance tokens saw a 25% drop as funding rates plummeted into negative territory across exchanges globally.
Experts characterized the scenario as a coordinated reduction of leverage prompted by external disturbances, rather than stemming from intrinsic vulnerabilities within the cryptocurrency market. The lack of stabilizing inflows has sparked worries about ongoing volatility that may persist in the upcoming trading sessions.
US Government Shutdown Delays Key Economic Data, Increasing Market Uncertainty for Crypto Traders
The ongoing government shutdown in the United States has delayed significant economic data releases, adding further complexity to macro analysis for investors at this time. In the absence of clear metrics or policy guidance, traders encounter increased uncertainty, leading them to depend more on sentiment-driven speculation rather than on fundamental analysis.
The interplay of geopolitical risks, macroeconomic instability, and liquidity pressures continues to cast a significant shadow over the short-term outlook for cryptocurrencies. To restore confidence, it will be essential to ensure renewed transparency, stable funding conditions, and a reduction in leverage utilization across leading exchanges in the future.
