Whale’s High-Leverage Trade on HYPE Causes $23.5 Million Loss

A significant loss of $23.5 million has been incurred by a prominent whale due to a high-leverage short position on the HYPE token. This incident, highlighted through on-chain data from Onchain Lens, has sparked discussions about the dangers associated with such strategies within DeFi. The whale’s trade, involving substantial margin and 5x leverage, resulted in an unrealized loss of $18.8 million. Further analysis by market analysts reveals a surge in HYPE’s price volatility following this action, fueled by increased open interest. This event has prompted conversations about systemic risks inherent to DeFi markets and potential regulatory interventions.