A trader exploited Hyperliquid's platform mechanics to open large positions with 50x leverage, resulting in the liquidation of 160,234 ETH, valued at $306.85 million. The Hyperliquidity Provider (HLP) absorbed the loss after the trader withdrew all margin and profits. In response, Hyperliquid has lowered the maximum leverage for ETH to 25x to mitigate future risks.
Hyperliquid Reduces ETH Leverage After $306M Liquidation Incident
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