Whale Hyperliquid witnessed millions of USD in profits "disappear"

Qwatio, a trader using leverage on Hyperliquid, quickly accumulated millions of USD with successful bets. However, 3 months later, he lost 10 million USD in just 3 days.

This incident is on a much smaller scale than other major leveraged liquidations, but it contains valuable lessons. Hyperliquid has closed its loopholes to mitigate risks and whale hunters have come together to "pull Qwatio down."

The story of Qwatio on Hyperliquid

Previously, the story of James Wynn attracted the crypto community when his leveraged trading on Hyperliquid resulted in a loss of 100 million USD, which could potentially change the entire market.

Today, Lookonchain highlighted Qwatio, another Hyperliquid trader who made a big bet and witnessed millions of USD in profits vanish.

Source: LookonchainBasically, Qwatio has made a series of quite risky bets on Hyperliquid, leading the community to speculate that he is an insider. One day before President Trump announced the crypto strategic reserve fund, this whale made a bold move.

Specifically, Qwatio bought BTC and ETH with a 50x leverage, allowing him to earn 6.8 million USD in just one day. From there, Qwatio made similar bold moves.

However, this excessive leverage is not the whole story. Trading with too high leverage on Hyperliquid can lead to losses, but this whale has found a way to exploit it to minimize risk.

After withdrawing 6.8 million USD in profits, he liquidated ETH positions worth 305 million USD, selling off his riskiest positions.

After these liquidation events, the Hyperliquidity Provider (HLP) had to incur losses. This has proven that such a trading model allows him to accumulate millions of USD.

Lookonchain even speculated that this strategy inspired the JELLYJELLY short squeeze, leading to a major crisis for the platform. In response, HLP significantly reduced its leverage limit.

Everything can collapse quickly in leveraged trading

Since the glorious moment in March, Qwatio's fortunes have turned for the worse. Groups of "whale hunters" have banded together to take him down, manipulating the asset prices that Qwatio has overly leveraged.

Although the initial efforts were unsuccessful, Qwatio was forced to send millions of USD to prevent its Hyperliquid positions from being liquidated.

After a few months like this, Qwatio's orders only resulted in negative profits. In the past three days, his positions have been liquidated 6 times.

This resulted in a loss of 10 million USD and Qwatio has changed their username to "Falllling". Nevertheless, this whale continues to send 4.5 million USD in the BTC/ETH betting order earlier today.

So, what can ambitious Hyperliquid traders learn from Qwatio? Simply put, over-leveraged trading is a very risky and dangerous action, much more than they might imagine.

When Qwatio caused HLP to incur losses, all the platform's rules changed. Furthermore, the whale hunters attempted to attack this trader, considering him an easy target.

Therefore, no matter how anyone tries to outsmart the market, the market still has a way to recover. Any retail trader can mimic Qwatio's behavior on Hyperliquid, but a single wrong move can destroy everything.

Vincent