A Whale sparked a real battle on hyperliquid, exploiting the mechanics of the DEX to garner millions. Cybercriminal or trading engineering? While the community is organized to counter it, the chess game continues.
A story that arouses the interest of the crypto community
While the crypto market has been relatively flat for a few weeks, A Whale came to disturb this tranquility during the last weekend.
Hyperliquid, a decentralized exchange (DEX) well known for having distributed a massive Airdrop to its users, found itself at the center of all this agitation by becoming a real digital battlefield. A story worthy of an epic saga that we will relate via this article with the information we have to write these lines.
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It seems that Our main protagonist has an in -depth understanding of the hyperliquid mechanisms, allowing him to draw substantial gains from his positions.
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The Saga of the famous Hyperliquid Whale
In order to remain as factual as possible, we will support this story full of twists on the analysis of Three Sigma, a company specializing in audits and crypto security.
The 1st attack
The 1st episode of this saga ended in a gain of $ 1.8 million for the Whale and a loss of $ 4 million For the Vault Hyperliquidity Provider (HLP).
How ? The Whale transformed 10 million dollars USDC in a long position on the Ether, representing $ 271 million with a high lever effect. She then removed her warranty, forcing the Vault HLP to accept the transaction.
Indeed, trader with such a large position can lead to a substantial loss due to the sliding (Slipping) by closing it. The trader therefore used a clever method to thwart this mechanism.
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Instead of selling the ETH in the Order Book, the trader withdrew his collateral, thus reducing his margin and forcing hyperliquid to liquidate the position. HLP therefore bought this long position of $ 286 millionleaving it exposed following events.
The trader knew that the forced sale of the HLP would lower the course of Ether, so he played on the 2 tables. He took a short position on the ETH in parallel, on a centralized exchange (CEX), in order to take advantage of this mechanism.
Although the trader's gain is “only” $ 1.8 million on hyperliquid, it is highly likely that his earnings are more substantial with his short position on a CEX.
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Revenge Play
After losing $ 1 million During his next attempt, the trader started again with a new plan. He took a long position on the Link token of $ 20 millionalways on hyperliquid while simultaneously opening a short position of $ 20 million On Binance, thus creating a Delta-Neautre position.
If hyperliquid liquidated it, the Vault HLP would be forced to sell within 30 minutes, giving the trader a chance to get ahead of the sale and lower the price of the link.
As long as the price fell by more than 1 %, its short position on Binance was appreciated, ensuring a profit. Again, the trader took advantage of the hyperliquid mechanisms to benefit from it.
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The saga continues
The Whale opened this weekend a short position on the BTC in lever time 40 for a total of $ 376 millionwith a liquidation price at 85,500 dollars.
Nevertheless, some people who understood the trader game, decided to ally to reverse the trend. It even seems that Justin Sun, the founder of the Blockchain Tron, decided to join the movement, without officially confirming:
Screenshot shared by the movement organizer to liquidate the Whale
However, the Whale did not allow himself to be done. She added $ 5 million of collateral to increase its position to $ 518 millionwith a liquidation price of 85,590 dollars.
Moreover, The Whale has decided to use a psychological means to tip the scales on its side. She then renamed herself “Tether Fud” to simulate that she was in possession of information that the general public does not have. The price of the BTC then went down, and the position of the trader then reached an unrealized profit of $ 7 million.
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Finally, the Whale closed its short positions on ETH, made surprising movements by taking a long position on the Melania and then, over several hours, gradually closed its position on BTC.
According to the information we have, the trader is in final profit of approximately $ 9.4 million.
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Perspectives for hyperliquid following these events
While these events have shown that certain Whales, with an in -depth understanding of the liquidity and hyperliquid mechanisms, can draw substantial gains from the situation, The attacks of this style are multiplying.
According to Vladimir Novakovski, the founder of Lighter, Copycats Try the same attack on Lighter Liquidity Provider (LLP): “Some traders try to harm LLP. We study the situation. »»
After the 1st attack, Hyperliquid quickly took action to reduce these risks. Levary effect multipliers have been reduced and margin requirements for important positions have been increased.
It is nevertheless important to recall that The famous Hyperliquid Whale did not hack the system but only took advantage of advanced expertise to take advantage of the liquidity mechanismsand ultimately derive substantial profit from it.
However, according to the most famous on-chain investigators, Zachxbt, The Whale at the origin of these twists and turns would be none other than ” cybercriminal »Who is soaring with stolen funds:
It's Funny Watching CT Speculate On the “Hyperliquid Whale” when in reality it's just a cybercriminal gambling with stolen funds.
– Zachxbt (@zachxbt) March 18, 2025
👉 Our opinion on the decentralized Dydx exchange
Although Hyperliquid has lost $ 4 million in this story, about 1 month of profitthe official positioning of the team behind the project on this situation is clear:
Hyperliquid has redefined trading. When a Whale sells uncovered […] And wishes a public hearing, this is only possible on hyperliquid … Anyone can touch up a screenshot of an unrealized profit. No one can question a hyperliquid position, just as no one can question a balance of bitcoin. The decentralized future is there.
It is clear that decentralization brings its share of inconveniences and questions. It will be interesting to observe the future modifications that Hyperliquid will bring to his protocol in order to avoid, or at least weighing this kind of situation.
The course of the hype has posted a sad mine since the general correction of the Crypto market, with a performance of – 40 % in the last 30 days.
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Sources: Three Sigma, The Cyptomath
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Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provided a weekly fundamental analysis.
Théo Zananiri
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