A Hyperliquid trader with a 92.5% win rate is facing liquidation after taking a 40x leveraged long position worth about $70.08m in bitcoin.
The wallet, tagged 0x396d, bought 911.55 BTC at an average price of $77,733 late on Sept. 10. Its liquidation price is $76,308.60, leaving bitcoin less than 1% above the level at which the entire position would be automatically closed.
Bitcoin was trading near $77,150 at press time, down 1.59% from the previous day. The position therefore has limited room for the market to move lower, particularly during a month in which BTC has experienced sharp price swings in both directions.
Hyperliquid is a decentralised exchange offering perpetual futures – derivative contracts without an expiry date, which traders can keep open provided they continue funding them. At 40x leverage, the trader has posted roughly $1.75m in collateral to control around $70m of bitcoin.
A move of about 2.5% against the position would eliminate that collateral. The difference between the entry price and the liquidation level highlights the risk created by such high leverage.
The timing of the trade followed a sharp market move on Sept. 10. Hotter-than-expected US producer price index (PPI) figures contributed to $562m of liquidations across cryptocurrency markets, sending bitcoin below $77,000. The wallet opened its long position after that sell-off.
Despite the immediate risk, the account has an unusually strong recent record. Lookonchain counted 80 bitcoin trades from the wallet, with 92.5% closing in profit.
Hyperliquid has also become the setting for several examples of the potential imbalance between large leveraged positions and the collateral supporting them. One trader with a 26-win streak held a Zcash short that moved $5.27m into losses, leaving no free margin to keep the position open.
Other large bitcoin trades have produced similar outcomes. A separate whale using 40x leverage lost $20.3m when a bitcoin short was liquidated at $82,236. Another address subsequently reopened a $121m bitcoin short using 10x leverage.
The trader behind the current long is not limited to waiting for liquidation. They could add margin, reducing the liquidation price and creating more room for the position to withstand a fall. Alternatively, they could close the trade early and accept its current value.
However, with bitcoin at $77,073 against an entry price of $77,733, the position is already running at a loss. That makes an early exit less attractive while leaving the trader exposed to a further decline towards the $76,308.60 liquidation level.
