Ben Zhou, the general director of Bybit, commented on a recent loss of $ 4 million incurred by decentralized exchange hyperlik (DEX) due to trading in high level of ether whale, noticing that centralized exchanges (CEX) encounter similar challenges.
On March 12, the cryptographic investor left $ 1.8 million and forced the hyperlivinity pool (HLP) to bear a loss of $ 4 million after trade, which used the lever on the hyperlicated decentralized exchange (DEX).
Trader used About 50 -a lever to transform $ 10 million into an ether position worth $ 270 million (ETH). However, the trader could not go out without refueling his own position. Instead, they withdrew the security, discharging assets without starting a self -proclaimed drop in prices, leaving hyperliquid to cover losses.
Bright contract auditor Three Sigma he said Trade was a “brutal game of liquidity mechanics”, not a mistake or a trigger. Hyperliquid also explained that it was not an exploit of the protocol or hack.
Source: Hyperlic
Hyperliquid lowers BTC and ETH trade
In response to trade, Hyperliquid lowered its Bitcoin (BTC) lever to 40x and ETH lever benefit to 25x. This increases the maintenance margin requirements for larger dex items. “This will provide a better buffer of liquidation of larger positions,” said Hiperliquid.
WX Post, CEO Bybit commented In the trade by saying that CEX is also subjected to the same situation. Zhou said that their liquidation engine takes over whaling positions when they were liquidated. Although lowering the lever can be an effective solution, Zhou said that it could be harmful to business:
“I see that HP has already lowered the overall lever; This is one of the ways to do it and probably the most effective, but it will hurt business, because users would like a higher lever. “
Zhou suggested a more energetic risk reduction mechanism, which reduces the overall lever as the position increases. The manager said that on the centralized whale platform he would fall to the 1.5x lever with a huge number of open positions. Despite this, the director realized that users can continue to employ many accounts to achieve the same results.
CEO Bybit added that even reduced leverage capabilities can still be “used”, unless DEX implements risk management means such as supervision and monitoring to see “market manipulators” at the same level as Cex.
Related: The cryptographic trader is attacked by sandwiches in Stablecoin Swap, loses $ 215,000
Hyperliquid sees a net outflow of $ 166 million
After the liquidation event Eth Whale and the losses suffered by the HLP vault, the protocol occurred a mass outflow of its assets in the managed. Dune Dune Analytics can be seen This hyperlian had a net outflow of $ 166 million on March 12, the same day as trade.
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