Controversial influencer Andrew Tate suffered a significant loss exceeding $583,000 on a 25x leveraged Ethereum trade executed on the Hyperliquid perpetual futures exchange. Analysis of Tate’s trading activity revealed a win rate of just 35.53% across 76 trades.
This incident echoes a previous high-profile loss on Hyperliquid involving trader James Wynn, who reportedly lost $87 million. Wynn’s losses stemmed from highly leveraged positions, including a $100 million Bitcoin long and a 10x leveraged PEPE trade.
In response to such substantial liquidations, Hyperliquid proactively reduced its maximum leverage limits. Bitcoin leverage was lowered from 50x to 40x, while Ethereum leverage was reduced from 33x to 25x, aiming to mitigate the risk of catastrophic losses for traders.
The transparency inherent in blockchain technology played a crucial role in verifying Tate’s losses. On-chain records directly contradicted Tate’s subsequent claim of achieving a 138.5% profit, underscoring the importance of verifiable data within decentralized finance.
The dangers of extreme leverage were further emphasized by a separate incident where a whale trader’s 50x leveraged Ethereum position was liquidated, resulting in a loss of approximately $200 million. These consecutive events starkly illustrate the amplified risks associated with high-leverage cryptocurrency trading.