Hyperliquid Response to "50x Leverage Whale" ETH Long Liquidation Event: Protocol Secure, Will Adjust BTC and ETH Leverage Limits

On March 12th, Hyperliquid made a post on social media, stating, "Regarding the 'Hyperliquid 50x Leveraged Whale' (user 0xf3f4) with a long position in ETH: Firstly, it should be made clear that there was no protocol vulnerability or hack." The user held an unrealized profit and loss (PNL). After making a withdrawal, which lowered the margin, the user was subsequently liquidated. In the end, the user made a profit of approximately $1.8 million, while HLP suffered a loss of about $4 million in the past 24 hours. Currently, HLP's historical cumulative PNL still remains at around $60 million. It should be noted that HLP is not a risk-free strategy. To increase the maintenance margin requirement for large positions, we will adjust the maximum leverage for BTC and ETH to 40x and 25x respectively, which will provide better cushioning for the liquidation of large positions.