Crypto Whale Risks $27.53 Million in High-Stakes PEPE Bet on Hyperliquid
A crypto whale has placed a daring $27.53 million leveraged long position on PEPE, raising concerns over potential liquidation and market-wide turbulence. With 10x leverage amplifying both risk and reward, the whale's position remains on shaky ground amid market volatility.
Whale Takes 10X Leverage on PEPE
Crypto and DeFi analyst Ai recently highlighted an aggressive bet made by a whale trader, who opened a $27.53 million 10x leveraged position on the PEPE meme coin via the Hyperliquid network. However, the trade quickly turned sour, leading to unrealized losses of approximately $3.238 million.
The whale, identified as address 0x507…BeDb6, entered the position on March 24 at an entry price of $0.00814 per 1,000 PEPE. Currently, the looming liquidation price sits at $0.005219, meaning any significant downward movement could force the position to close.
To stave off liquidation, the whale injected an additional $3.818 million USDC in margin, indicating a firm commitment to sustaining their position. Despite this defensive move, the heightened leverage increases vulnerability to price swings, potentially triggering a cascading effect in the broader market.
Market Risks and Liquidation Threats
The use of 10x leverage means even minor fluctuations in PEPE’s price can cause massive swings in the whale’s account balance. If the token’s price continues to decline and reaches the liquidation threshold, Hyperliquid’s automated systems will forcibly close the position, potentially exacerbating sell-offs across the market.
Such liquidations often trigger a domino effect, where other leveraged traders are caught in a downward spiral, leading to further instability. With PEPE’s price already down over 5% in the last 24 hours—trading at $0.00000721—the risk of a cascading liquidation event remains high.
Broader Implications for Crypto Markets
Beyond PEPE, the situation mirrors another ongoing leveraged trade in the crypto sphere. Prominent trader CBB, a Key Opinion Leader (KOL) on X, has also taken a 10x leveraged long position on Ethereum (ETH) worth $2.11 million. As of now, they face an unrealized loss of $1.035 million, signaling broader instability in leveraged trading.
With both PEPE and ETH traders struggling to maintain their leveraged positions, the market remains on edge. If liquidation thresholds are breached, the resulting volatility could ripple across the entire crypto ecosystem.