A whale trader is navigating a precarious situation as their heavily leveraged PEPE position on Hyperliquid teeters on the brink of liquidation.
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With a 10x leverage on a $27.53 million bet, even the slightest price fluctuations could trigger an automatic sell-off, potentially worsening market instability. Crypto analyst Aibrought attention to the risky trade, revealing that the whale entered their position on March 24 at $0.00814 per 1,000 PEPE. However, the market has moved against them, resulting in $3.238 million in unrealized losses.
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If PEPE’s price drops to $0.005219, the position will be forcibly liquidated. To avoid this, the trader has injected an additional $3.8 million in margin, hoping to keep their position open.
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High-leverage trades like this magnify both gains and losses, making them exceptionally volatile. If the market continues its downward trajectory, Hyperliquid’s liquidation system will automatically close the whale’s position, potentially triggering a cascading effect. Large liquidations often lead to further sell-offs, as other leveraged traders face similar risks, amplifying market volatility.
The whale’s decision to add more margin suggests they are determined to defend their position, but it also highlights the immense pressure they are under. If PEPE’s decline persists, they could be forced to absorb even greater losses or eventually lose control of the trade altogether.
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As market conditions remain uncertain, traders are watching closely to see if this gamble pays off or leads to a broader market shakeup.
Alexander Stefanov
