High-Leverage Trader Loses $2.788 Million in Two Days

A high-leverage trader recently exited the market after incurring a significant loss of $2.788 million over just two days. The trader initially deposited 2.96 million USDC into Hyperliquid on May 17th. The trader's first move was to short 41,851 ETH with 25x leverage, resulting in a position value of $103 million. However, as ETH prices continued to rise, the trader's position faced multiple liquidations. By the morning of May 19th, the trader had closed all ETH short positions, resulting in a loss of $2.46 million.

Undeterred by the initial loss, the trader switched to a long position on BTC using the remaining funds. The trader opened a long position on 166 BTC with 40x leverage, valued at $17.6 million. Unfortunately, BTC prices began to retrace, and the trader's position was liquidated after just 45 minutes, resulting in an additional loss of $175,000.

The trader then returned to shorting ETH, opening a 25x leveraged short position for 2,636 ETH at a price of $2,444. As ETH prices declined by $100, the trader used unrealized profits to increase the short position, which moved the liquidation price lower and increased the risk. When ETH prices slightly rebounded to $2,410, the position was liquidated, further exacerbating the trader's losses.

Finally, the trader withdrew the remaining value of $172,000 USDC from Hyperliquid, accepting the total loss of $2.788 million and exiting the market. This series of high-leverage trades highlights the significant risks involved in leveraged trading, where small price movements can lead to substantial losses. The trader's aggressive strategy and the rapid price movements in the cryptocurrency market ultimately led to a substantial financial loss.