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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/20/2026

Trader Loses $24 Million in 12 Seconds on Ether Short Liquidation

What happened: The wallet pension-usdt.

Trader Loses $24 Million in 12 Seconds on Ether Short Liquidation

What happened: The wallet pension-usdt.eth was liquidated out of a 50,000 ETH short position on Hyperliquid in just 12 seconds as ether surged. Five sequential liquidation orders pushed the ETH price up by $43 during the cascade, with the final tranche absorbed by Hyperliquid's insurance fund. The trader, previously up $49 million from shorting, lost about $24 million in the event, wiping out nearly half of prior profits.

Why it matters: This rapid, cascading liquidation underscores the risks of high leverage and thin liquidity in perpetuals markets. Each forced buy order drove prices higher, amplifying losses and impacting market stability. The episode also highlights the role of insurance funds in absorbing tail risk, and the fragility of even highly successful trading strategies in volatile conditions.

Source: CoinDesk