{"id":125021,"date":"2025-03-13T20:16:23","date_gmt":"2025-03-13T20:16:23","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125021"},"modified":"2025-03-13T20:16:23","modified_gmt":"2025-03-13T20:16:23","slug":"hyperliquid-ups-margin-requirements-after-4-million-liquidation-loss","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125021","title":{"rendered":"Hyperliquid ups margin requirements after $4 million liquidation loss"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsHyperliquid, a blockchain network specializing in trading, has increased margin requirements for traders after its liquidity pool lost millions of dollars during a massive Ether (ETH) liquidation, the network said.\u00a0<br \/>\nOn March 12, a trader intentionally liquidated a roughly $200 million Ether long position, causing Hyperliquid\u2019s liquidity pool, HLP, to lose $4 million, unwinding the trade.\u00a0<br \/>\nStarting March 15, Hyperliquid will begin requiring traders to maintain a collateral margin of at least 20% on certain open positions to \u201creduce the systemic impact of large positions with hypothetical market impact upon closing,\u201d Hyperliquid said in a March 13 X post.\u00a0<br \/>\nThe incident highlights the growing pains confronting Hyperliquid, which has emerged as Web3\u2019s most popular platform for leveraged perpetual trading.\u00a0<br \/>\nHyperliquid has adjusted margin requirements for traders. Source: HyperliquidHyperliquid said the $4 million loss was not from an exploit but rather a predictable consequence of the mechanics of its trading platform under extreme conditions.\u00a0<br \/>\n\u201c[Y]esterday\u2019s event highlighted an opportunity to strengthen the margining framework to address extreme conditions more robustly,\u201d Hyperliquid said.\u00a0<br \/>\nThese changes only apply in certain circumstances, such as when traders are withdrawing collateral from open positions, Hyperliquid said. Traders can still take on new positions with up to 40 times leverage.<br \/>\nPerpetual futures, or \u201cperps,\u201d are leveraged futures contracts with no expiry date. Traders deposit margin collateral \u2014 typically USDC (USDC) for Hyperliquid \u2014 to secure open positions.\u00a0<br \/>\nBy withdrawing most of his collateral and liquidating his own position, the trader effectively cashed out of his trade without incurring slippage \u2014 or losses from selling a large position all at once.\u00a0<br \/>\nInstead, those losses were borne by Hyperliquid\u2019s HLP liquidity pool.\u00a0<br \/>\nHyperliquid\u2019s HLP has more than $350 million in TVL. Source: DeFiLlamaRelated: Crypto market liquidations likely reached $10B \u2014\u00a0Bybit CEO<br \/>\nLeading perps exchange<br \/>\nAs of March 13, HLP has a total value locked (TVL) of approximately $340 million sourced from user deposits, according to DefiLlama.\u00a0<br \/>\nLaunched in 2024, Hyperliquid\u2019s flagship perps exchange has captured 70% of the market share, surpassing rivals such as GMX and dYdX, according to a January report by asset manager VanEck.\u00a0<br \/>\nHyperliquid touts a trading experience comparable to a centralized exchange, featuring fast settlement times and low fees, but is less decentralized than other exchanges.<br \/>\nAs of March 12, Hyperliquid has clocked approximately $180 million per day in transaction volume, according to DefiLlama.\u00a0<br \/>\nMagazine: Trump\u2019s crypto ventures raise conflict of interest, insider trading questions<a href=\"https:\/\/cointelegraph.com\/news\/hyperliquid-ups-margin-rules-4m-liquidation-loss?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsHyperliquid, a blockchain network specializing in trading, has increased margin requirements for traders after its liquidity pool lost millions of dollars during a massive Ether (ETH) liquidation, the&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125021"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125021"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125021\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125021"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}