The crypto market just witnessed its largest liquidation event ever — and it wasn’t pretty. Over 1,000 wallets on Hyperliquid got completely wiped out, with 6,300 total wallets now bleeding red. The culprit (or cover story)? Trump’s surprise 100% tariff announcement on Chinese imports sent traders scrambling.
Here’s the damage: $1.23 billion vanished from Hyperliquid alone, while the broader crypto market saw $19 billion in liquidations within 24 hours. Bitcoin dipped below $110k, Ethereum fell under $3,700, and the CoinDesk 20 index dropped 15%.
Let’s break down what happened — and who made a killing while others lost everything.
The Carnage: By the Numbers
Hyperliquid’s leaderboard tells a brutal story. Out of 6,300 wallets now underwater:
- 1,000+ accounts were completely liquidated
- 205 wallets lost over $1 million each
- 1,000+ traders saw losses exceeding $100,000
The selloff came fast and merciless. Trump’s tariff bombshell triggered a global risk-off event that didn’t discriminate — stocks, crypto, everything tanked. Investors fled to safety, and overleveraged crypto positions got crushed.
According to CoinGlass, the $19 billion liquidation figure might actually be conservative. Leading exchanges like Binance don’t report as quickly as others, meaning the real number could be significantly higher.
Winners and Losers: A Tale of Two Wallets
Not everyone got wrecked. While thousands lost fortunes, a handful of savvy (or lucky) short sellers made absolute bank.
The top 100 Hyperliquid traders collectively gained $1.69 billion. Meanwhile, the bottom 100 dropped $743.5 million. Do the maths: that’s a net profit of $951 million concentrated among a small group of highly leveraged shorts.
The biggest winner? Wallet 0x5273…065f raked in over $700 million from short positions alone. That’s generational wealth created in a single day.
On the flip side, trader “TheWhiteWhale” lost $62.5 million. Crypto personality Jeffrey Huang (aka Machi Big Brother) watched his $14 million wallet evaporate almost entirely. His response on X? “Was fun while it lasted.”
Brutal honesty, at least.
Why Did This Happen?
Four words: leverage, tariffs, uncertainty, manipulation.
Trump’s tariff announcement wasn’t just bad news for trade — it spooked every risk asset on the planet. When global markets panic, crypto feels it first and hardest. Traders who’d been riding high on leverage suddenly faced margin calls they couldn’t meet.
Add to that the U.S. government shutdown, which delayed key economic data releases. Markets hate uncertainty, and right now they’re flying blind. Without official indicators and with geopolitical tensions rising, volatility is the only guarantee.
What This Means for Crypto Markets
This liquidation event is a harsh reminder: leverage cuts both ways. When markets are up, it amplifies gains. When they turn south, it destroys portfolios.
The concentration of profits among top traders also highlights something uncomfortable — crypto markets remain incredibly winner-take-all. While retail traders got liquidated by the thousands, a few dozen accounts walked away with nearly a billion in profits.
Going forward, expect continued volatility. Until economic data returns and geopolitical tensions ease, crypto markets will stay choppy. If you’re still playing with leverage, tread carefully — or risk becoming another statistic on the leaderboard.
The Bottom Line
The crypto market just had its worst day ever by liquidation volume, and it all happened in 24 hours. Thousands of traders lost millions while a small group of short sellers printed money.
If there’s a lesson here, it’s this: respect the risk. Markets can turn on you faster than you think, and when they do, leverage won’t save you — it’ll bury you.
Stay sharp, manage your risk, and maybe keep some dry powder for the next opportunity. Because in crypto, there’s always another rollercoaster around the corner.
FAQ
Q1: What caused the massive crypto liquidation on Hyperliquid?
A: President Trump announced a 100% tariff on Chinese imports, triggering a global risk-off event. This spooked investors across all asset classes, leading to rapid crypto selloffs and mass liquidations of overleveraged positions.
Q2: How much money was lost in the Hyperliquid liquidation event?
A: Over $1.23 billion in trader capital was erased on Hyperliquid alone. Across the entire crypto market, liquidations exceeded $19 billion in 24 hours — the largest single-day event in crypto history.
Q3: Who were the biggest winners and losers?
A: Wallet 0x5273…065f made over $700 million from short positions, while “TheWhiteWhale” lost $62.5 million. The top 100 traders collectively gained $1.69 billion, concentrated among leveraged short sellers.
Q4: Is the crypto market still volatile after this event?
A: Yes. The ongoing U.S. government shutdown has delayed key economic data, and rising geopolitical tensions continue to fuel uncertainty. Expect continued volatility until conditions stabilise.
Q5: What lessons should crypto traders learn from this?
A: Leverage is a double-edged sword that can wipe out portfolios during sharp downturns. Risk management is critical, especially during periods of high uncertainty and geopolitical instability.
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Effective Date: 15th July 2025
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