50x long ETHWhale 'Get Liquidated' but makes a cool $2 million! A single person takes down Hyperliquid with a huge bad debt, what happened?

Yesterday (12), a Whale trader known for high leverage operations on the Decentralization exchange Hyperliquid, made nearly 2 million USD in profit after a 'voluntary Get Liquidated' operation, leaving behind a large amount of bad debts. What happened? (Background: Whale started LongBTC and ETH, with 50x leverage, earning 2.2 million USD) (Background: The magic of Hyperliquid: Why did the Whale choose to do contracts on a DEX?) Recently, on the Decentralization exchange Hyperliquid, a Whale trader (WalletAddress starting with 0xf3) has attracted widespread community following due to his operations often involving high leverage. Each time he opens a position, the liquidation price is very close to the limit, but he has made huge profits multiple times, earning him the nickname 'Inside Man' in the community. Yesterday (12), this trader's series of operations once again caught the community's attention. He used 50x leverage to Long ETH on Hyperliquid and after the 'voluntary Get Liquidated' operation, still made nearly 2 million USD in profit. What exactly happened? Whale's Voluntary Get Liquidated According to on-chain data analyst Ai, this Whale first opened a 50x leveraged ETH long order yesterday (12), with an initial Open Position average price of $1,863.62, liquidation price of $1,677.1, total Holdings of 17,130 ETH worth approximately 31.2 million USD, and also deposited 3.485 million USD of USDC as Margin. In the following hours, he continued to operate by continuously increasing the Margin through 'increase the position' and swapping BTC positions, expanding his ETH long order position to approximately 140,000 ETH, with a total value of 270 million USD. The average Open Position price was around $1,900, and the liquidation price reached $1,877, expanding his ETH long order position to occupy 24.65% of the total ETH contract positions on Hyperliquid. Just when the community thought he wouldn't increase his long position anymore, the Whale made one last 'increase the position,' pushing his ETH long order position over 170,000 ETH, with Holdings valued over 343 million USD. However, shortly after this operation started, the Whale made a stunning move. He withdrew most of his capital and profits, rapidly raising his liquidation price, resulting in the liquidation of approximately 160,000 remaining ETH. While choosing to 'voluntarily Get Liquidated,' he quietly left with around 1.85 million USD in profit. Hyperliquid's Loss of 4 million USD It is worth noting that after earning nearly 2 million USD with one bold move, the Whale left a mess in the market. After withdrawing a large amount of capital and profits, the liquidation price of his position quickly rose, and the remaining over 100,000 ETH was eventually taken over by the Hyperliquid treasury (HLP) for subsequent liquidation. However, due to the significant amount of this order, the liquidation process caused a continuous drop in ETH prices, resulting in the Hyperliquid treasury having to buy the order, totaling a loss of around 4 million USD. In response, Hyperliquid stated later on X social platform that the treasury's losses did not come from protocol vulnerabilities or hacker attacks, but from the Whale's withdrawal operation: Regarding comments on the 0xf3f4 user's ETH longs: It needs to be clarified: there was no protocol exploit or hack. The user had unrealized PNL, withdrew, reducing their Margin, and was liquidated. The user ultimately made around 1.8 million USD in profit. Hyperliquid lost around 4 million USD in the past 24 hours. HLP's historical total PNL remains at around 60 million USD. It is worth reminding that HLP is not a risk-free strategy. Maximum leverage for BTC and ETH will be updated to 40x and 25x respectively to increase the maintenance Margin requirements for larger positions, providing better buffer for larger position liquidations. How does the community view this? Regarding yesterday's events, many community members expressed that the Whale had a significant negative impact on the market. On one hand, due to the Whale's previous successful extreme operations, many investors started to copy trade his operations. Yesterday, as the U.S. was about to announce the latest CPI data, copy trading investors were even more convinced that this 'Inside Man' could lead them to victory. Unfortunately, under the Whale's operations, the significant fluctuations in the market led to many copy trading traders being liquidated, buying orders for the Whale. Additionally, the Hyperliquid treasury (HLP) also lost nearly 4 million USD this time. The funds of the Hyperliquid treasury partly come from Liquidity providers seeking fixed income. These individuals can deposit funds into the Hyperliquid treasury, which will distribute around 20% APY to these investors. The damage to the Hyperliquid treasury fund undoubtedly will also harm the interests of these Liquidity providers. Finally, investors are reminded by Dynamic Zone that from this Get Liquidated event, whether copy trading Whales or investing in Decentralized Finance products, there are certain risks, and investors need to remain cautious.