Cryptocurrency traders lost more than a billion dollars overnight

More than a thousand users of the decentralized exchange Hyperliquid lost their deposits during the rapid collapse of the crypto market on the night of October 11. According to the Lookonchain analytical platform, the total losses of users exceeded $ 1.23 billion, and more than 6,300 wallets are currently in the red.

Large traders suffered the largest losses: at least 205 participants lost more than $ 1 million each, and more than 1,070 users lost about $ 100,000. Among the largest individual losses, Lookonchain notes four wallets: one of them lost $ 18.73 million, another — $ 16.43 million, having only $ 140 in the account afterwards. Two other wallets lost $ 15.69 million and $ 13.72 million, respectively.

The massive liquidations occurred after a sharp drop in bitcoin, which fell by more than 10% in a few hours. Due to the high leverage, most positions of Hyperliquid users were automatically closed, which led to a «domino effect» and further deepening of the sale.

According to analysts, such events demonstrate the risks of high volatility of decentralized derivatives platforms, where liquidations can occur instantly without centralized control.

Against the backdrop of these events, the crypto market’s fear and greed index dropped to 35 points, indicating a sharp deterioration in investor sentiment and an increased level of caution after the historic losses of Hyperliquid traders.