Hyperliquid Saved Itself a $15 Million Loss, but Sparked Criticism - Ep. 807
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Another and then how far do you go? Right? Is it North Korea? Is it any time either tax evader or somebody else is on it? Any time. Right? Like, there's a government subpoena. Do you have to comply with it? So so there's kind of this slippery slope argument. That being said, right, they did convene to change the rules or, you know, go different than kind of what the rules they committed to are. So I think, right, that's where Zack's argument is coming in is that, well, if you're looking at your own losses, there definitely is a potential conflict of interest there, motivated reasoning from the
Hi, everyone. Welcome to Unchained. You're no hype resource for all things crypto. I'm your host, Laura Shin. We are now featuring quotes from listeners on the show. Today, we have a comment responding to my interview with the Ethereum Foundation research co leads Alex Stokes and Barnabe Mono. On chain Yoda writes, don't think EF needs more research, maybe more shipping in prod. If you'd like your comment featured, write a review of the podcast overall or leave a comment on our video on YouTube or x. This is the 03/28/2025 episode of Unchained. Bitkey is the Bitcoin wallet from the team behind
Glad to be here.
This week, the crypto world was riveted by an unusual series of events on HyperLiquid. All of this happened on Wednesday, and it resulted in Hyper Liquid's vault called Hyper Liquid Provider, which is its automated market banker. At one point, being in the red by, I guess, it was about 12,000,000 or 15,000,000? The
big yeah. About, I think, 15,000,000 at the at the the trough. So
Okay. Yeah. So Doug and I were just talking before we started recording about how there's a lot of numbers floating out around out there, and they're all a little bit different and contradictory, but we we actually managed to sort through it all. So the price of hype also dropped about 16% according to CoinGecko. Why don't you tell us what it is that happened and, you know, as part of your description, just explain what HyperLiquid is for listeners who may be unaware.
Yeah. Yeah. So Hyper Liquid is a a perp DEX, which means, right, DEX being a decentralized exchange, perps being perpetual futures. So unlike like a regular spot DEX, you can trade leveraged positions, and these are derivatives on crypto coins like like Bitcoin or Ethereum or, in this case, Jelly Jelly. You could trade derivatives on those, and then that all that means is that, right, there's a a long and a short. They don't actually hold the coins on the exchange. They just kind of enter you enter into these contracts where someone's long, someone's short, and based on the price, one side wil
So go ahead and and tell us how this series of events got started.
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