Big news in the world of cryptocurrency! A super-rich crypto investor, called a 'whale,' caused a big problem on a decentralized exchange (DEX) called Hyperliquid. Think of a DEX as a digital marketplace where people can trade cryptocurrencies without a central bank controlling everything. This whale made a very risky trade, and it resulted in a $4 million loss for Hyperliquid.
- The whale used a lot of borrowed money (leverage) to make a huge bet on Ether (ETH), a popular cryptocurrency.
- When the bet went wrong, the whale caused a big drop in the price of ETH, leaving Hyperliquid to cover the losses.
- Hyperliquid lowered the amount of borrowed money people can use to trade to prevent this from happening again.
- Bybit CEO, Ben Zhou, pointed out that even big centralized exchanges (like banks for crypto) face similar issues.
| Fact | Number |
|---|---|
| Whale's loss | $1.8 Million |
| Hyperliquid's loss | $4 Million |
| Hyperliquid's asset outflow | $166 Million |
| Whale's initial investment | $10 Million |
