Hyperliquid trader loses millions as Ethereum short unwinds

A major cryptocurrency trader using the ENS-linked address ‘pension-usdt. eth’ suffered a massive liquidation on the Hyperliquid platform after an Ethereum short position unwound in just 12 seconds. The position involved approximately 50,000 ETH, representing roughly $108 million in notional exposure.

The liquidation occurred between 04:51:03 and 04:51:15 UTC following a sudden spike in Ether prices. The forced unwind was completed through five separate sales. While the trader reportedly lost between $24 million and $26.66 million, the event wiped out a significant portion of the $49 million in profits the wallet had accumulated earlier this year through successful short positions on Ethereum and Bitcoin.

During the rapid liquidation process, Hyperliquid’s insurance and backstop fund absorbed the remaining 1,417 ETH when no buyers could be found for that specific amount. This event was part of a broader market movement where $2.74 billion in short positions were liquidated within a 24-hour period, marking one of the largest forced short-covering waves recorded since 2021.