Someone with wallet address 0xff84 on Hyperliquid, the decentralized perpetuals exchange, was staring down the barrel of a forced liquidation on a Bitcoin short position worth roughly $114.4 million. So they did what any rational person sitting on 40x leverage would do: they started cutting.
The trader closed approximately 250 BTC of the position across multiple transactions, eating a realized loss of about $33,400 in the process. That left a remaining short of around 1,543 BTC, valued at roughly $98.97 million, still live and still leveraged to the teeth.
Playing with fire at 40x
The position peaked at around 1,793 BTC, with an average entry price hovering between $63,999 and $64,000. At 40x leverage, a 2.5% adverse move wipes out the entire margin.
As Bitcoin’s spot price climbed in recent sessions, the liquidation threshold crept up to approximately $64,225. That’s a gap of just $225 from the entry price, or about 0.35%.
