After a month of silence, the infamous “Hyperliquid 50x ETH whale” has re-entered the market with another aggressive move this time opening a massive long position on Ethereum worth $47.62 million using 20x leverage.
The anonymous trader initiated the position by buying 47,253 ETH at an average entry price of $1,459, with a liquidation price at $1,391. This high-leverage move came in response to Ethereum’s sharp 17% plunge, which saw the asset fall below the critical $1,500 mark for the first time since March 2023.
Despite the volatile conditions, the whale closed the long position on April 7 around 11:00 AM UTC, pocketing a $1.87 million profit. Blockchain data revealed that the whale later withdrew $6.3 million to Arbitrum (ARB), confirming a successful return to active trading.
Interestingly, the position’s unrealized gains once peaked at $4.52 million, showcasing the scale and risk appetite of the trader. The brief spike in profitability retraced quickly, reinforcing the extreme volatility of leveraged trades during a steep market downturn.
A Recap of the Whale’s First Big Splash
The trader originally earned the nickname “Hyperliquid 50x ETH whale” back in March, after opening a jaw-dropping long position of 175,000 ETH (valued at approximately $340 million) using 50x leverage. That aggressive move put enormous strain on Hyperliquid’s infrastructure and nearly triggered a liquidity meltdown.
When the trader closed a portion of that position, withdrawing 17.09 million USDC in margin, the platform was forced to liquidate the remaining 160,000 ETH, resulting in over $4 million in losses for Hyperliquid’s vault. Despite the chaos, the whale managed to exit with a net profit of around $1.8 million.
Risk and Regulation Response
In the aftermath, Hyperliquid took decisive action, reducing leverage limits to mitigate future liquidation risks. Maximum leverage for BTC and ETH was lowered to 40x and 25x, respectively, to ensure market stability and prevent platform wide disruptions.
ETH’s Current Outlook
As of now, Ethereum is trading at $1,487, with its market cap down by over 18% due to recent price movements. The current correction highlights broader market fragility amid increased whale activity and leveraged speculation.
While the reappearance of the Hyperliquid ETH whale signals renewed confidence in Ethereum’s rebound potential, it also serves as a reminder of the market-shifting impact a single trader can have in a highly leveraged environment.
