A single Crypto Trader reduced Ethereum with maximum leverage on Hyperliquid and paid the price within 8 hours. What began as a luxurious $5.08 million bet turned into a disaster, with traders using up their position with $310,000 remaining.
The gambler lost $4.77 million in $ETH within 8 hours.
He used maximum leverage (25x) to deposit $5.08 million on high lipids on short $ETH.
Now he's only $30,000.
Brutal! https://t.co/pwhjqzhxen pic.twitter.com/fcjlyi43yc
– lookonchain (@lookonchain) May 9, 2025
Short position for Ethereum
It started with a huge deposit: 3.36 million USDC was transferred from the user's wallet to high lipids, opening a 25x leveraged short position in Ethereum. Upon entry, the trader's total position was blown to 41,947 ETH (approximately $92 million). Traders were clearly predicting a sharp drop in price when trading ETH just over $2,300.
The liquidation price for this dangerous move was $2,247.1. Such gatherings that exceed that threshold mean instantaneous settlement of positions.
The Ethereum Market opposed him
ETH has gained strong bullish momentum after a successful Pectra upgrade at the beginning of the week. The position of the trader, which once produced an unrealized profit of $658,000, quickly became a catastrophic loss as ETH began pumping.
Within a few hours, the tide had changed dramatically. Initially, the shorts were profitable, but the shorts were closed at a loss of $333.6K of 333.6K.
AM wallet has been changed to 0K
The wallet, which once held the original $5.08 million, now only includes $310,000 after a failed transaction. This is a loss of $4,770,000 in an incredibly short period of time within eight hours. Traders have moved from what appears to be a bet in a confident direction to one of the most brutal liquidations they have ever experienced this month.
Is the information about gambling and gamblers wrong?
People were speculating about the deal. Degenerate gambling with maximum leverage, is it all? Or did the traders have insider surgeons who have never panned out? Shortening the market with Max Leverag seemed very reckless at best, as ETH Rally is boosted by positive sentiment, technical upgrades and institutional flows.
But in cryptography, what it needs is bad reads, and it's all gone.
Lessons from liquidation
This event is a difficult lesson about the dangers of excessive leverage in unstable environments. Even traders with deep pockets are not safe from the power of the market when risk is mismanaged. The strength of Ethereum's response to such offensive short stories only highlights its strength and the danger of increasing timing at the top.
Whatever it is, gambling, or just unlucky, but the end result is simple. The market today humbled another gambler.
