According to on-chain analytics firm Arkham Intelligence, Andrew Tate was liquidated eight times within 24 hours on the decentralized derivatives platform Hyperliquid due to consecutive high-leverage Bitcoin trades. These position changes have once again brought the transparency and high-risk nature of on-chain contract platforms back into the market's spotlight.
40x leverage for switching between long and short positions
According to Arkham, Tate initially established a long position in Bitcoin worth approximately $3.8 million, with a leverage of 40x. Subsequently, as the price of Bitcoin fell from $66,000 to $62,500, he opened a short position worth approximately $1 million.
Amidst rapid price fluctuations, these highly leveraged positions triggered liquidations in quick succession. The article states that eight liquidations occurred within 24 hours, indicating an aggressive trading style with very little room for error.
The account balance dropped to approximately $14,000.
Arkham stated that after continuous liquidation, the account balance had decreased to approximately $14,000. According to Arkham, this means Tate lost approximately $86,000 in this round of trading compared to the initial deposit.
The article also mentions that Tate's cumulative losses on Hyperliquid since last November are reportedly close to $800,000. While this figure has not been publicly disclosed by Tate himself, it has been closely watched by market participants.
- Long positions total approximately $3.8 million.
- The leverage ratio is 40 times.
- Liquidated eight times within 24 hours
On-chain platform positions are easier to track
This incident sparked discussion not only because of the amount of loss, but also because the positions, liquidations, and fund changes of on-chain platforms like Hyperliquid can usually be continuously tracked externally. For high-profile traders, publicly visible changes in their holdings often amplify market attention.
During periods of heightened Bitcoin volatility, highly leveraged positions are inherently more susceptible to liquidation. This incident also highlights that while on-chain perpetual contract platforms offer highly efficient trading, they also expose risks more quickly and directly.
