Hyperliquid Hit by $4M Trade, Bybit CEO Calls for Limits

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Hyperliquid Hit by $4 Million Trade, Bybit CEO Calls for Risk Adjustments

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 13, 2025

Key Takeaways

A crypto trader used 50x leverage on Hyperliquid, making $1.8 million while leaving the DEX with a $4 million loss;
Hyperliquid lowered Bitcoin leverage to 40x and Ethereum to 25x to prevent similar losses;
Bybit's CEO suggested reducing leverage as positions grow but warned traders might find ways around restrictions.

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Hyperliquid Hit by $4 Million Trade, Bybit CEO Calls for Risk Adjustments

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A recent high-leverage trade on Hyperliquid led to a $4 million loss for the decentralized exchange (DEX).

According to a post on X by blockchain security firm Three Sigma, a trader used 50x leverage to turn a $10 million stake into a $270 million Ethereum position.

They withdrew collateral, shifting the risk to Hyperliquid’s liquidity pool, which ended up covering the loss. The trader walked away with a $1.8 million profit.

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In response, Hyperliquid reduced its maximum leverage—Bitcoin BTC $89,589.32 was capped at 40x, and Ethereum ETH $3,041.46 at 25x. The platform explained that higher margin requirements would provide a better safety net for handling large liquidations.

Bybit $1.3B CEO Ben Zhou commented in a post on X, pointing out that centralized exchanges (CEXs) face the same risks when handling large liquidations.

He explained that when a whale’s position is liquidated, Bybit’s liquidation engine takes over. While reducing leverage is one way to manage risk, he acknowledged it could make the platform less attractive to traders.

Zhou suggested a more flexible system where leverage decreases as a trader’s position grows. On a centralized exchange, he explained, a position as large as the one on Hyperliquid would have its leverage reduced to around 1.5x.

Still, he admitted that determined traders could bypass restrictions by using multiple accounts.

Meanwhile, Garantex, a Russia-based crypto exchange, recently halted all services and put its website under maintenance. What happened? Read the full story.