Ether Trader Loses Millions in Hyperliquid Liquidation as Market Corrects

A dramatic liquidation happened on the decentralized exchange Hyperliquid this week as Ether briefly fell near the $4,000 mark, erasing fortunes built up over months of trading. The incident highlights the unforgiving volatility of crypto markets, where even seasoned traders can see massive gains wiped out within days.

Legendary Ether Trader Faces Steep Loss

The trader in question had remarkably turned an initial $125,000 investment into more than $43 million at its peak, booking around $7 million in profits earlier this week. 

However, as the market pulled back, blockchain analytics platform Lookonchain reported that the trader’s long position on Ether was liquidated, resulting in a $6.22 million loss. What remains of the once-legendary run is just $771,000 — nearly four months of gains erased in two days.

The correction also rattled other prominent figures. Well-known leverage trader James Wynn saw his long position partially liquidated, leaving only $300,000 worth of ETH at risk of further liquidation should the price fall below $4,113. 

Wynn, known for his bullish outlook on an impending altcoin season, admitted on X that he is now “all-in” with no stablecoins left, and warned he would need to “drastically cut down” on living expenses if his expectations don’t play out.

Whales React: Panic Selling and Strategic Buys

Beyond individual traders, whale wallets have also shown sharp responses to the downturn. Lookonchain data revealed that three large holders sold a combined $147 million worth of Ether. This included $77 million from wallet “0x1D8d,” $57 million from “0x5A8E,” and over $12 million from “0x3684.”

Yet, not all whales are fleeing. Some viewed the dip as an opportunity. Nansen data showed wallet “0x159,” ranked among the top 100 traders, purchased $3.4 million worth of ETH. 

Other significant buys included $3.16 million by whale “0x929” and $2.9 million by “0x5dc.” Even the wallet tied to the notorious Radiant Capital exploiter reportedly acquired $16.6 million worth of Ether.

The crypto market now turns its eyes toward U.S. Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole on Friday, a potential catalyst that could shape short-term investor sentiment across digital assets.