Crypto
Hyperliquid Trader Suffers $26M Loss in 12-Second Ether Short Unwind
A large Hyperliquid trader lost $26.66 million in just 12 seconds when a massive Ether short position unraveled.
The trader, using the ENS-linked address pension-usdt.eth, had taken on a huge bet against Ether with a 50,000 ETH short position worth around $108 million in notional exposure.
When prices spiked, the short was quickly unwound between 04:51:03 and 04:51:15 UTC, leaving the trader with significant losses and Hyperliquid's insurance fund to absorb the remaining 1,417 ETH.
The incident serves as a reminder that crypto derivatives can move faster than even experienced traders expect, and highlights the importance of managing risk in leveraged positions.