Hyperliquid trading volume before and after latest liquidation event paints sobering picture for traders

Following a major liquidation cascade that halved Hyperliquid's open interest (OI) from $13.8 billion, the platform's trading dynamics show a concerning trend. In the week before the event, daily trading volume averaged $10 billion; surprisingly, in the week after, volume climbed 17%, even as OI remained significantly depressed. This discrepancy suggests traders are engaging in high-risk "revenge trading" to quickly recoup losses. This behavior is further evidenced by a 70% average daily increase in liquidations post-cascade, indicating that most traders failed to recover their positions and may now be in a worse financial state. Separately, Hyperliquid cofounder Jeff Yan recently criticized some centralized exchanges for underreporting liquidation data.

(Source：The Block)