Bybit CEO on ‘brutal’ 4 million USD Hyperliquid loss: Lower leverage as positions grow

Ben Zhou highlighted the 4 million USD loss from a 50x leveraged trade that caused significant damage to Hyperliquid. He acknowledged similar challenges faced by centralized exchanges during large trades.

Following the incident, Hyperliquid reduced BTC leverage to 40x and ETH to 25x to mitigate risks. Zhou cautioned that such reductions might decrease trading volumes as traders often seek higher leverage.

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