A recent surge in market volatility has left Hyperliquid traders facing significant losses, with a majority of their top positions experiencing unrealized negative values. According to blockchain analyst Ai Yi, 85% of the TOP20 positions and even 34 out of the 100 largest trades within the platform remain unprofitable, highlighting concerns over leveraged trading practices during volatile markets. This underscores persistent risk management challenges for large traders on platforms like Hyperliquid.
The trend has been observed throughout the market, with numerous liquidation events further emphasizing the need for robust risk strategies. Notably, James Wynn’s $39.3 million position liquidation exemplifies this trend. While no official statements from Hyperliquid leaders have been released yet, community discussions highlight the need for caution with high leverage during such volatile conditions.
Further adding to the concern is the historical pattern observed during a major BTC decline in June 2025, where similar positions suffered heavy liquidations, demonstrating the risk profile of leveraged trading on platforms like Hyperliquid. The volatility in Bitcoin’s price further reflects potential regulatory concerns with tighter scrutiny potentially being imposed on leveraged trading practices.