The recent crypto market crash triggered a record-breaking wave of liquidations on decentralized exchange Hyperliquid, wiping out over $1.23 billion in trader positions within 24 hours.
According to blockchain analytics platform Lookonchain, more than 6,300 wallets ended in the red, with over 1,000 accounts losing their entire balances.
The data reveals the severity of the leverage collapse:
Among the hardest hit was wallet 0x1a67, which lost $18.73 million, reducing its balance to zero. Others, such as 0x0a07 and 0x1d52, were left with less than $150 each after sustaining losses above $15 million. Blockchain data confirms that these traders were overexposed to highly leveraged long positions during the violent downturn.
This wipeout follows a broader market cascade that hit major cryptocurrencies including Bitcoin and XRP, where aggressive liquidations erased billions in open interest. Analysts attribute the synchronized collapse to over-leveraged positions across decentralized and centralized derivatives platforms, amplified by high funding rates and thin weekend liquidity.
Despite the scale of the losses, Hyperliquid’s systems handled the stress test without disruption, a rare feat for on-chain exchanges under such conditions. Still, the fallout highlights the persistent dangers of excessive leverage in decentralized trading. As the dust settles, traders and institutions alike are reassessing position sizes and risk parameters to prevent a repeat of one of 2025’s most brutal liquidation events.
