Hyperliquid will adjust the leverage limits for BTC and ETH after the recent 50X ETH liquidation event

After the recent eth liquidation event, which caused a loss of $ 4 million to the hyperliquid hyperliquidity supplier vault, the platform said it will increase the maximum leverage allowed for the trade of bitcoin and ethereum to avoid similar incidents in the future.

In this liquidation event, a whale had built a long -sought -after position of 50x in ethereum (eth) that reached 160,234 eth. However, when the market moved against them, causing effective liquidation, the user could still remove 17.09 million coins from USD (USDC), leaving profits before the liquidation was executed on the hyperlichid platform.

The HLP vault, which is designed to act as support, absorbed the loss of $ 4 million (approximately 1% of the TVL of the $ 451 million vault) of this liquidation. The vault of the hyperliquidity or HLP supplier is like a shared money boat where people deposit the funds (in USDC) for profits (or incurring losses), proportional to their participation, regarding the commercial activities of Hyperliquid.

Speculation caused the user to somehow manipulated the HLP to his advantage by removing the capital of the HLP vault in a way that triggered the self-liquidation event with the HLP taking the opposite position in trade.

However, recently hyperlichid <a target="_blank" rel="nofollow" href="https://x.com/HyperliquidX/status/1899768864705237211″ target=”_blank”>approached the incident in xassuring users there was no exploit or hack. The platform said that its liquidation engine simply could not handle the size of the user's position. The platform also said they will increase the maximum leverage for bitcoin (btc) and ethereum at 40x and 25x respectively to increase the maintenance margin requirements for larger positions.

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