According to Lookonchain, a crypto trader deposited $5.08 million into Hyperliquid and shorted Ethereum (ETH) using maximum leverage of 25x, ultimately losing $4.77 million in under 8 hours and reducing his account balance to just $310,000 (source: x.com/lookonchain). This highlights the significant risks of high-leverage trading in volatile markets and underscores the importance of robust risk management for ETH and crypto derivatives traders.

According to Lookonchain, a trader deposited 3.36 million USDC into Hyperliquid and opened a high-leverage 25x short position on Ethereum, totaling 41,947 ETH (approximately $92 million) with an unrealized profit of $658,000. The position’s liquidation price is set at $2,247.1, which is notably close to recent ETH support levels, suggesting the trader anticipates significant downside movement. This sizable short increases market volatility risk and could trigger cascading liquidations if ETH price approaches the liquidation threshold. Crypto traders should monitor ETH price action closely as such large leveraged positions can impact both spot and derivatives markets. Source: Lookonchain on Twitter, May 9, 2025.

According to @doctortraderr on Twitter, a high-leverage ETH short trade setup is currently suggested, with an entry price of $1840, a margin of $20, and a target price of $1690 using 10X leverage as part of the $100-$1K challenge. This strategy appeals to traders looking for quick gains in a volatile market, emphasizing risk management by limiting margin to $20 (Source: @doctortraderr, May 1, 2025).