HYPE Price Tanks Another 9% to $12.54 as Hyperliquid Faces $160M Outflow

Hyperliquid's native cryptocurrency HYPE has tanked by another 9% slipping to $12.54, as the network faces massive $160 million in outflows

Hyperliquid’s (HYPE) native cryptocurrency has plummeted by another 9% in the past 24 hours, slipping to $12.54. The recent price drop follows massive $160 million in outflows from the network following the liquidation of the massive ETH long positions on the platform.

The ETH whale liquidation event triggered a $4 million loss in the platform’s HLP Vault, leading to huge selling pressure on HYPE.

HYPE Price Drops As Hyperliquid Records $166M AUM Outflow

Following the liquidation of the ETH long positions, HYPE price has come under severe selling pressure. The recent 8% drop comes along with a 51% surge in daily trading volumes, shooting past $207 million. This shows that there’s a growing bearish sentiment around the altcoin.

Hyperliquid experienced a significant net outflow of $166 million in assets under management (AUM) on March 12, marking the platform’s second-largest single-day outflow. The substantial outflow is attributed to withdrawals by HLP Vault depositors in response to the losses.

Whale’s $340M ETH Long Position Triggers Liquidation

A high-leverage whale trade involving 175,000 ETH, valued at approximately $340 million, has led to significant market movements. The trader initially secured a floating profit of $8 million and closed 15,000 ETH before transferring 17.09 million USDC in margin back to their address.

However, following the margin withdrawal, the remaining 160,000 ETH long position was liquidated. The large liquidation size forced Hyperliquid HLP to assume the position at $1,915. The platform is now gradually unwinding the position to mitigate market disruption and manage associated risks.

In order to avoid the massive outflows and user panic, Hyperliquid stated that this wasn’t a part of the protocol vulnerability or a hacking incident. Instead, the user withdrew margin while holding unrealized profits, lowering their margin ratio and triggering liquidation. Despite a $4 million loss in the past 24 hours, Hyperliquid’s HLP maintains a total historical profit of approximately $60 million.

Is It Right Time to Buy the HYPE Dips?

Prominent crypto analyst CryptoGod John has expressed bullish sentiments for HYPE price, highlighting the current market conditions as a potential buying opportunity.

John noted that the token has retraced significantly since its earlier listing pump, entering what he describes as a strong support zone.

“Seen some drama on the timeline about it — but think this is a good area to scoop some while most hypetards who were loud at $20+ have now become very quiet.”