The “insider wallet” that made over $100M on October tariff trade in threat of liquidation if one asset continues to dip

A single wallet on the Hyperliquid exchange, which previously profited over $100 million during October's crypto selloff by correctly shorting BTC and longing ETH, now holds a substantial long position in Ethereum (ETH) valued at about $649.6 million.

This position, entered near $3,161.85, is currently facing unrealized losses and funding costs, leaving a margin cushion of about $129.9 million before forced closure, with a liquidation estimate near $2,268.37, which is about 22% below the current spot price. The risk is amplified because Hyperliquid uses a cross-margin system, meaning the liquidation price is a moving target influenced by collateral changes and funding payments across all positions in the account.

If the position is liquidated, Hyperliquid first attempts to close it on the order book, but severe losses could trigger auto-deleveraging or strain the platform's backstop. While the wallet's liquidation point is below current major leverage clusters shown on CoinGlass heatmaps, a broader market downturn pushing ETH below $2,400 could sweep this large position into a cascade effect, potentially leading to significant downward pressure on spot prices through arbitrage flows.

(Source：CryptoSlate)