The crypto market once again reminded us: leverage is no joke. In the last 24 hours (January 31 - February 1, 2026), total liquidations exceeded $2.5–2.6 billion, of which the lion's share was on long positions for ETH and BTC. The loudest story is on the decentralized perpetual exchange Hyperliquid.
One large trader (known as Garrett Jin / 'OG whale' / '10/10 trader', who previously made hundreds of millions on Trump-hype and shorts) was completely liquidated on a long position for ETH-USD. The size of the liquidation was $222.65 million (according to CoinGlass and CoinDesk), while total losses in recent weeks/months are estimated at $230–250 million. The account on Hyperliquid has dwindled to a pitiful $53, and the historical PnL has gone deep into the red (-$128 million+).
What happened:
• ETH crashed by 10–17% (to ~$2,280–2,400 at the moment) due to macro factors (geopolitics, strong dollar, tough rhetoric from the Fed).
• High leverage (5x–10x+) + cascade of sales → forced liquidation of positions.
• Hyperliquid’s HLP (their liquidity treasury) earned about ~$15 million from this, which provided depositors with an instant yield of ~5.8% (annualized >100%).
This is a classic “leverage flush”: crowded longs are washed out, funding rates have become deeply negative, RSI oversold. After such crashes, a rebound often follows, but the risks remain enormous.
A lesson for everyone: even top traders with multi-million profits can lose everything in hours. Trade wisely, don’t chase 100x leverage, and always remember the risks.
#crypto #bitcoin #Ethereum #Hyperliquid #liquidation
