Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14304 Articles

Created: 2026/02/02 18:52

Updated: 2026/02/02 18:52

Hyperliquid whales net $48M on 200% XPL rally, amid manipulation allegations

The post Hyperliquid whales net $48M on 200% XPL rally, amid manipulation allegations appeared on BitcoinEthereumNews.com. Update (Aug. 27 at 5:44 pm UTC): This article has been updated to reflect that a blockchain analyst retracted a claim linking Justin Sun to a whale wallet. Four whales, or big cryptocurrency investors, were accused of price manipulation that resulted in a $4.59 million loss for one unfortunate trader, raising questions about the reliability of decentralized trading platforms over their centralized counterparts. Four whale addresses profited a combined $47.5 million after the recently launched Plasma blockchain’s (XPL) token soared 200% to over $1.80 in minutes on the decentralized exchange Hyperliquid. The largest of the four, wallet 0xb9c, profited more than $15 million as the “main orchestrator,” wrote blockchain data platform Spot On Chain in a Wednesday X post, adding: “Whale manipulation on #Hyperliquid sent $XPL soaring 200% to $1.80 in minutes earlier today, marking one of the wildest short squeezes and wealth redistributions we’ve seen!” “In just a few months, Hyperliquid has seen whales exploit HLP vulnerabilities, manipulate coin prices, and snipe positions,” added the post, urging the decentralized trading platform to respond to the allegation. Source: Spot On Chain Related: Crypto whales buy $456M Ether in ‘natural rotation’ from Bitcoin The near $48 million profit came at the expense of multiple other traders, with the most unfortunate suffering a $4.5 million loss on an XPL position. A second unfortunate trader, X user CBB, admitted to losing $2.5 million on his XPL short position, adding that he is “never touching isolated markets” again. The manipulation allegations come five months after Hyperliquid suffered a $6.26 million exploit involving the Jelly my Jelly (JELLY) memecoin due to a vulnerability in its liquidation parameters, Cointelegraph reported in March. Related: Crypto treasuries top $100B for Ethereum’s 10th anniversary: Finance Redefined Onchain sleuth retracts claim linking Justin Sun to whale wallet One onchain sleuth…

Author: BitcoinEthereumNews

2025/08/28

Bitcoin Risks Liquidation Cascade Amid Ethereum Rotation

The post Bitcoin Risks Liquidation Cascade Amid Ethereum Rotation appeared on BitcoinEthereumNews.com. BitcoinEthereum Bitcoin’s recent weakness could extend further, with leverage piling up and capital rotating into Ethereum, according to a new report from K33 Research. Vetle Lunde, K33’s Head of Research, highlighted that notional open interest in BTC perpetual futures has surged to a two-year high of over 310,000 BTC ($34 billion), with 41,600 BTC added in the past two months. A sharp weekend jump of 13,472 BTC pushed funding rates from 3% to nearly 11%, signaling aggressive long positioning despite stagnant price action. “These conditions resemble leverage build-ups in 2023 and 2024 that ended in brutal liquidation cascades,” Lunde wrote, warning that long squeezes could be imminent. He advised traders to remain cautious until excess leverage is flushed out. Ethereum Steals the Spotlight Adding pressure to Bitcoin is a “huge” rotation into Ethereum. A whale recently swapped 22,400 BTC for ETH on decentralized exchange Hyperunit, driving ETH to a record $4,956 and lifting the ETH/BTC ratio above 0.04 for the first time this year. The surge ended Ethereum’s 1,380-day drawdown and shifted momentum toward ETH, bolstered by ETF inflows and corporate treasury demand. Historically, Ethereum all-time highs have coincided with broader crypto cycle peaks — as in 2017 and 2021, when ETH breakouts were followed by altcoin rallies and Bitcoin stagnation. However, BTC dominance remains relatively high at 58.6%, compared to sub-40% levels during prior cycle tops, suggesting the market has yet to enter full “altcoin froth” mode. Market Signals Split Institutional flows show a cautious stance. CME traders have trimmed BTC exposure, and options markets have turned defensive, with longer-dated skews entering positive territory for the first time since 2023. ETH futures, by contrast, are trading at steep premiums and outperforming BTC as demand consolidates around Ethereum. The question now is whether this cycle repeats history — with ETH…

Author: BitcoinEthereumNews

2025/08/28

China Leverages Crypto Control Over Trump Family Wealth

The post China Leverages Crypto Control Over Trump Family Wealth appeared on BitcoinEthereumNews.com. Opinion by: Joshua Chu, co-chair of the Hong Kong Web3 Association China’s control over cryptocurrency liquidity in Hong Kong gives it unprecedented power over the Trump family’s crypto wealth. This leverage lets Beijing influence the family’s financial fate — and potentially US-China relations — through market moves. As Eric Trump visits Hong Kong, this crypto-political nexus signals a new era of global power. Cryptocurrency is no longer seen as just the new financial innovation around the block. Virtual assets have become powerful geopolitical instruments determining the fates of nations. As Imran Khalid said, “China, by contrast [to the US], has played the long game. It chose dialogue over drama, and principle over provocation.” China’s rise and growing control and dominance over the Web3 economy were similarly marked by its carefully orchestrated flexible liquidity control structure through a parallel hedge in Hong Kong. When considering this level of control, combined with the Trump family’s unprecedented and increasing reliance on digital assets for wealth, it reveals a subtle yet decisive form of influence that Beijing can wield. Trump family’s crypto wealth surge US President Donald Trump attacked Bitcoin (BTC) during his first presidency, saying it’s “not money” and “based on thin air.” This position had made an obvious U-turn by 2025. In a Fox News interview with Donald Trump Jr., he revealed that the family “didn’t have a choice” but to get into crypto after banks refused to do business with them after the Jan. 6 “nonsense.” As a politically exposed person (PEP), this was a telling turnaround. Banks and financial institutions are usually stricter when dealing with PEPs because their prominent positions usually mean they become targets for bribery and corruption, yielding a higher risk of financial crime entanglement with illicit money laundering. Since taking the plunge into crypto, the Trump…

Author: BitcoinEthereumNews

2025/08/28

Smarter Web Company Adds 45 Bitcoin as BTC Price Pushes Back Above $113,000

TLDR: Smarter Web Company expanded its Bitcoin treasury to 2,440 BTC with a fresh £3.7M purchase at £82,919 per coin. The company’s Bitcoin treasury now totals more than £201M in purchases under its long-term acquisition policy. Bitcoin price recovered from below $109K to $113,225 in two days, with 1.96% gains in the last 24 hours. [...] The post Smarter Web Company Adds 45 Bitcoin as BTC Price Pushes Back Above $113,000 appeared first on Blockonomi.

Author: Blockonomi

2025/08/28

HYPE Token Hits All-Time High of $51.09 Amid Strong Hyperliquid Fundamentals

The post HYPE Token Hits All-Time High of $51.09 Amid Strong Hyperliquid Fundamentals appeared on BitcoinEthereumNews.com. Hyperliquid native token HYPE established a new all-time high of $51.09 on Aug. 27, capping a 19% rally that began at the previous day’s opening. The milestone occurred amid robust platform fundamentals that positioned Hyperliquid as a dominant force in decentralized derivatives trading. Platform Volume Dominance Supports Token Rally Hyperliquid registered $330.8 billion in combined spot and perpetual volume during July, surpassing Robinhood’s $237.8 billion across all products by $93 billion. The gap represented Hyperliquid’s strongest monthly performance since beginning its winning streak against the retail platform. Robinhood’s July performance included $209.1 billion from equities, $195.8 million from options, and $28.7 billion from crypto trading, according to the company’s Aug. 13 attestation. The comparison highlighted Hyperliquid’s focus on derivatives trading versus Robinhood’s diversified product offering. Data from Artemis showed Hyperliquid’s consistent growth trajectory. The platform traded $256 billion in May compared to Robinhood’s $192 billion, followed by June volumes of $231 billion versus $193 billion, respectively. The August performance represented a new monthly all-time high, with the platform surpassing $377 billion in monthly volume by Aug. 26, according to DefiLlama data. New records boosted this in August for both spot and perpetual trading at $18.07 billion and $359.23 billion, respectively. Further, the protocol surpassed $2 trillion in year-to-date cumulative volume from spot and perpetuals. Record Revenue Efficiency Demonstrates Platform Strength Hyperliquid achieved the highest revenue per employee globally, at $115.2 million, surpassing traditional technology giants and the previous record holder, Tether Limited. Tether ranked second with $93 million per employee, while OnlyFans placed third at $37.6 million, according to data compiled by Hyperliquid France. Traditional tech giants lagged considerably, with Nvidia at $3.6 million, Apple at $2.4 million, and Meta at $2.2 million per employee. The exchange operated with just 11 core contributors, as CEO and co-founder Jeff Yan confirmed…

Author: BitcoinEthereumNews

2025/08/28

The whale address 0xa523 holds a total of 86,800 ETH, worth $298 million.

According to PANews on August 28, according to Lookonchain monitoring, the whale address 0xa523 continued to increase its ETH long position, currently holding a total of 86,845 ETH, with a total value of approximately US$297.7 million. The liquidation price of this position was US$4,342.8.

Author: PANews

2025/08/28

Shocking $161M Wipeout In Perpetual Futures

The post Shocking $161M Wipeout In Perpetual Futures appeared on BitcoinEthereumNews.com. Crypto Liquidations: Shocking $161M Wipeout In Perpetual Futures Skip to content Home Crypto News Crypto Liquidations: Shocking $161M Wipeout in Perpetual Futures Source: https://bitcoinworld.co.in/crypto-liquidations-wipeout/

Author: BitcoinEthereumNews

2025/08/28

Another tragedy on Hyperliquid: XPL flash short squeeze, users may lose more than $60 million. When will the whale hunt end?

By Frank, PANews Hyperliquid's HYPE token hit a new high on August 27th, just one day after a carefully orchestrated "flash short squeeze" ravaged the XPL pre-market futures market on Hyperliquid. In less than an hour, the price chart was violently pulled into a near-vertical drop, instantly depleting the accounts of countless short traders while the manipulators walked away with a massive profit exceeding $46 million. This incident quickly sparked a furor in the crypto community, with outcry, anger, and conspiracy theories mingling. People couldn't help but wonder: Was this a random occurrence of extreme market volatility, or a precisely targeted massacre exploiting a protocol vulnerability? And why, at the center of this storm, has Hyperliquid repeatedly become the perfect hunting ground for the nefarious activities of whales? A long-planned "hunt" This seemingly sudden market crash was actually a carefully planned hunt. According to Aiyi's on-chain data tracking, this coordinated attack was carried out by at least four core wallet addresses. The roles and fund deployment of two primary attack addresses are particularly clear: one is an address beginning with 0xb9c0, and the other is an address on DeBank under the username "silentraven." The remaining two addresses played supporting roles. These wallets displayed similar operational behavior. Between the 23rd and 25th, three addresses transferred large amounts of funds to initiate long positions on XPL. Among them, address 0xb9c0, the primary attack address, preemptively deployed $11 million in USDC to open long positions on XPL on Hyperliquid at an average price of around $0.56. The address of DeBank username "silentraven" also established a long position of 21.1 million XPL using $9.5 million in USDT at an average price of $0.56 over the past three days. These addresses invested a combined total of over $20 million, acquiring substantial long positions in batches and at different times within nearly the same price range. Several of these addresses clearly only invested in long positions in XPL after their creation. At around 5:30 am on August 26, when most traders in Asia were still asleep, the hunting moment quietly arrived. The 0xb9c0 address transferred an additional $5 million to the Hyperliquid platform. This indiscriminately pumped up the token's price. In the already extremely thin pre-market for XPL, this capital injection was like a spark in a powder keg, instantly detonating the entire order book. Within minutes, the price of XPL skyrocketed from around $0.60 to $1.80, a surge of over 200%. This short-term surge has several obvious consequences. First, most traders won't have time to increase their margin to raise the liquidation price. Second, even hedging orders with a minimum leverage of 1x will be liquidated. Third, as many short positions are liquidated one by one, forced liquidation buy orders will further drive prices higher, creating the most terrifying "short squeeze" phenomenon in the financial market. Finally, when the price reached its peak, the manipulators began to close their positions at prices between $1.1 and $1.2. According to Aunt Ai’s statistics, this sniping operation brought the manipulators a total profit of over $46 million. The $60 million wail and the platform's "indifference" A feast of capital is inevitably accompanied by the wailing of another group of people. When the manipulators return with a full haul, all that is left for other market participants are bloody losses and endless questions. Crypto KOL @Cbb0fe said that he allocated 10% of his funds to hedge on Hyperliquid, resulting in a loss of $2.5 million. He will never touch the isolated market again. Other media outlets reported that the largest loss at a single address was approximately $7 million. However, they did not provide specific address information, raising questions. However, judging from the profits of the manipulators, the maximum profit at that time was indeed more than 46 million US dollars, and it is not yet known whether there were other undiscovered partners in this process. Judging from the changes in contract positions, before the attack began, the contract holdings of XPL on Hyperliquid reached a maximum of US$153 million, and then quickly plummeted to 22.44 million, with a reduction of more than US$130 million. It is estimated that the overall losses of short position users may reach US$60 million. This loss even surpassed the $11 million in losses Hyperliquid in March caused by the JELLY token scam. Perhaps because the company itself wasn't directly affected, the victims had to swallow their losses in silence. In community discussions, a familiar name was repeatedly mentioned: Tron founder Justin Sun. One user pointed out that an address involved in this attack had transferred ETH to an address associated with Justin Sun several years ago, but this action does not directly prove that the address has an actual connection with Justin Sun. Following the incident, many users turned to Hyperliquid, hoping the platform would provide an explanation or provide remedial measures. However, Hyperliquid did not drastically close profitable orders or directly shut down related accounts, as it did in March when handling the JELLY token manipulation incident. Instead, they responded in their official Discord group, stating that while the XPL market experienced significant volatility, Hyperliquid's blockchain operated as designed during this period without any technical issues. Liquidation and automatic deleveraging (ADL) mechanisms were implemented in accordance with public protocols, and because the platform utilizes a fully segregated margin system, this incident only affected XPL positions, and the protocol did not generate any bad debts. For many netizens, the lack of adjustments is understandable. After all, Hyperliquid warned of high volatility and risks when XPL launched, and all such manipulation was carried out within market rules. But for those users who have been deeply affected, such a response seems somewhat cold. Cause of the tragedy: a fatal conspiracy between platform, target and timing Looking back at the entire incident, this isn't the first time Hyperliquid has engaged in similar market manipulation. This process is clearly the result of premeditated and meticulous planning by the manipulators. Furthermore, it's also closely linked to the design of Hyperliquid's platform. First, this type of short squeeze is not uncommon in financial markets and often occurs in markets with poor liquidity and isolated prices. This particular operation on Hyperliquid capitalizes on several key features. First, the platform's extreme on-chain transparency allows manipulators to calculate the funds needed to manipulate the market and the desired effect using publicly available data such as positions, liquidation prices, and funding rates. Second, Hyperliquid's isolated oracle system. Because XPL utilizes an independent pricing system on Hyperliquiquid, independent of external oracles, manipulators can freely manipulate prices within this siloed environment without having to worry about price balancing on other exchanges. Furthermore, the selection of the target for manipulation also involves numerous tricks. The XPL token (and WLFI, another similar but less dramatic example) involved in this manipulation are both unlisted tokens. This means they are "paper contracts" without the risk of spot delivery or market manipulation, making them easier to manipulate. Finally, there's the matter of timing. Before the attack, XPL's trading volume was only a few hundred thousand tokens per five minutes, translating to approximately $50,000 USD. This coincided with the period of declining trading enthusiasm following the launch of the cryptocurrency. This thin liquidity provided an opportunity for the attacker to exploit, enabling market manipulation with minimal capital. The XPL incident exposed deep-seated structural risks, reminding us to reflect on both the platform and user levels. From the platform's perspective, the first issue is vulnerability. Since 2025, Hyperliquid has experienced three market manipulation incidents. Each incident almost always reveals vulnerabilities within Hyperliquid as a decentralized derivatives exchange. These vulnerabilities have repeatedly resulted in the loss of funds for ordinary users and a weakening of the Hyperliquiquit platform's credibility. In this case, the issue stemmed from both the siege created by an isolated oracle mechanism and price suppression caused by a lack of proactive platform liquidity intervention when unusual positions emerged. Secondly, is it more important to confront the perpetrators equally or to maintain a decentralized facade? In the JELLY incident, Hyperliquid unhesitatingly initiated an on-chain vote, ultimately recovering losses and expelling the perpetrators. The rationale at the time was that they were forced to take actions that undermined decentralization in order to protect the platform's user vaults. However, facing losses far exceeding those of the previous incident, is this because the platform's vaults were intact, or is it a choice to ignore the situation to prevent the banner of decentralization from falling again? This may raise a major question in the minds of users. Finally, for users, the XPL manipulation incident has once again heightened our vigilance against illiquid and isolated markets. Pre-market contracts with extremely low liquidity and lacking a spot market anchor are often the hunting grounds of whales. Furthermore, the time-honored trading principles of reducing leverage and setting stop-loss orders are never empty words.

Author: PANews

2025/08/28

Bitcoin trend reversal to $118K or another drop to $105K: Which comes first?

                                                                               Bitcoin traders have been buying all the dips but BTC is still stuck in a downtrend. Here’s why.                     Key takeaways: Retail traders are aggressively buying BTC price dips in spot and futures markets, but net selling from larger order investors is preventing a robust price recovery.Risk of another liquidation cascade to $105,000 seems less likely, but investor sentiment is misaligned with the trend seen in assorted cumulative volume data cohorts. Read more

Author: Coinstats

2025/08/28