Crypto Trader Loses $269,000 in ETH Fiasco
Key Summary
Machi's Hyperliquid wallet suffered a $269,000 loss on ETH after being force-liquidated on Oct. 15. The wallet then reopened a long position seven minutes later, accumulating another $2,500 ETH long. This comes after substantial voluntary selling, and the liquidation rules allow remaining collateral to stay with the trader.
Background Context
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Market Analysis
On Oct. 15, Hyperliquid force-liquidated 1,650 ETH early in the morning, and the tracked wallet held a new 2,500 ETH long by 13:16 BST. A Hyperliquid wallet tracked by Lookonchain as belonging to Machi had 1,650 ETH force-liquidated on the derivatives exchange Hyperliquid early on Oct. 15, then began reopening a long about seven minutes after the last forced fill. By 1:16 p.m. BST, the tracked wallet held a new 2,500 ETH position, again betting on higher prices. Hyperliquid's public data for the wallet records 232 liquidation fills between 3:22:25 a.m. and 3:24:32 a.m. BST. They executed between $2,330.30 and $2,380.30 and recorded approximately $269,225 in realized trading losses, excluding about $1,087 in fill fees. The liquidation followed substantial voluntary selling. From 2 p.m. BST on Oct. 14 through the last forced fill the following morning, the wallet voluntarily closed another 4,000 ETH, recording approximately $302,312 in realized losses before fees. The two loss figures cover separate trade categories: 250 ETH of the voluntary closes occurred during the forced-close window. Buying resumed at 3:31:27 a.m. BST. By 3:56 a.m., the wallet had accumulated a 320 ETH long at an average entry price of about $2,355.53. By 1:16 p.m. BST, the wallet had rebuilt a 2,500 ETH long at an average entry price of about $2,370.34. A separate Hyperliquid transaction shows 250,000 USDC arriving at the tracked address's spot balance at 10:48 a.m. BST. Hyperliquid's liquidation rules explain how funds can remain after a forced close. Positions become eligible for liquidation when equity falls below maintenance margin. If order-book sales restore the required margin, remaining collateral stays with the trader.
* Hyperliquid
* Machi
* Lookonchain
* CryptoSlate
Regulatory Enforcement
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* Machi's Hyperliquid wallet suffered a $269,000 loss on ETH after being force-liquidated on Oct. 15.
* The wallet then reopened a long position seven minutes later, accumulating another $2,500 ETH long.
* This comes after substantial voluntary selling, and the liquidation rules allow remaining collateral to stay with the trader.
A screenshot of a trading dashboard showing a trader's wallet with a large loss, with a red