Hyperliquid Whale's millions of dollars in profit "disappeared"

According to Gate News bot, as reported by TapChiBitcoin, Qwatio is a Margin Trading trader on Hyperliquid who quickly accumulated millions of dollars through successful bets. However, three months later, he lost $10 million in just three days. Compared to other major margin liquidations, the scale of this incident is much smaller, but it contains valuable lessons. Hyperliquid has bridged its risk mitigation gaps, and the Whales have joined forces to "take down Qwatio."

Previously, the story of James Wynn attracted the attention of the cryptocurrency community when his margin trading on Hyperliquid resulted in a loss of 100 million dollars, which could change the entire market.

Today, Lookonchain highlights Qwatio, another Hyperliquid trader who placed a big bet but saw millions of dollars in profit vanish.

Essentially, Qwatio made a series of quite risky bets on Hyperliquid, leading the community to speculate that he is an insider. The day before President Trump announced the establishment of a cryptocurrency strategic reserve, this "Whale" made a bold move. Specifically, Qwatio bought BTC and ETH with 50x Margin Trading, earning $6.8 million in just one day. After that, Qwatio made similar bold moves.

However, excessive leverage is not the whole problem. Using too high of a Margin Trading on Hyperliquid may lead to losses, but this "Whale" has found a way to use leverage to minimize risks.

After cashing out a profit of 6.8 million dollars, he liquidated a position of 305 million dollars in ETH, selling off the highest-risk positions.

After these liquidations, the High Liquidity Provider (HLP) suffered losses. This proves that this trading model allowed him to accumulate millions of dollars.

Lookonchain even speculated that this strategy inspired the short squeeze of JELLY, ultimately evolving into a significant crisis for the platform. In response, HLP significantly lowered the margin trading limit.

Since the glorious days of March, Qwatio's fate has taken a sharp turn for the worse. Groups of "Whales" conspired to take him down, manipulating the prices of Qwatio's overly leveraged assets.

Despite initial efforts failing, Qwatio was forced to deposit millions of dollars to prevent its Hyperliquid position from being liquidated.

Several months have passed, and Qwatio's order profits are all negative. In the past three days, his positions have been liquidated six times. This resulted in a loss of $10 million, and Qwatio changed his username to "Falllling." Nevertheless, this Whale still deposited $4.5 million in the BTC/ETH bet earlier today.

So, what can those aspiring to trade on Hyperliquid learn from Qwatio? In short, the risks and dangers of over-leveraged trading far exceed their imagination.

When Qwatio caused HLP to incur losses, the rules of the entire platform changed. Moreover, the Whales attempted to attack this trader, considering him a vulnerable target.

So, no matter how hard someone tries to outperform the market, the market always finds a way to bounce back. Any retail trader can imitate Qwatio's behavior on Hyperliquid, but one wrong move could ruin everything.