Whale $106 million impairment controversy: From unrealized gains of $56 million to unrealized losses of $50.46 million, how far is the liquidation line?

A large ETH long whale account on Hyperliquid is experiencing an extreme loss of wealth. According to on-chain analyst Yu Yan’s tracking, address 0xb317…72b3ae has seen its account rapidly shift from an unrealized profit of approximately $56 million to an unrealized loss of $50.46 million within just a few days, with a total devaluation exceeding $106 million. This is not only a dilemma for a single account but also reflects the overall pressure on long positions in the current market.

Extreme Losses of ETH Long Whales

Account Status Overview

This whale account has opened a massive ETH long position on Hyperliquid. Based on data:

What is most shocking is the rapid reversal of this account. A few days ago, it was floating with a profit of $56 million, meaning the account shrank by over $106 million in a short period. Behind this extreme volatility is the persistent downward pressure on ETH prices.

Market Background: ETH Continues to Weakness

From related news, ETH faces significant short-term pressure:

• 24-hour decline of 7.02%
• 7-day decline of 11.01%
• 30-day decline of 2.48%

In such a declining environment, highly leveraged long positions are the first to be affected. Although this whale account did not use extreme leverage, its total position of $660 million and one-sided bullish bet put it under enormous pressure when prices drop rapidly.

Approaching Liquidation Risk

How Close Is It to Liquidation

The most dangerous aspect is how close this account is to the liquidation line. The liquidation price is $2,263.64, and the current ETH price is about $2,955, with less than $700 difference.

What does this mean? If ETH continues to fall by more than $700, this account will face forced liquidation. Considering ETH has already dropped 7% (about $200) in 24 hours, the remaining buffer of $700 is rapidly being eroded.

Hyperliquid Platform Liquidation Pressure

The predicament of this whale is not an isolated event. According to recent reports, Hyperliquid has experienced frequent liquidations recently:

• Liquidation amount in the past 4 hours reached $235 million
• BTC accounts for 44.68%, ETH and SOL follow
• Long liquidations dominate

This indicates that the entire platform’s longs are under pressure, with many small and medium accounts being liquidated. Although this whale account is larger and more resilient, it cannot escape the downward market pressure either.

Market Insights Behind It

Why Are Longs Continually Struggling

From the performance of multiple whale accounts, this wave of decline is a systemic blow to longs:

• “BTC OG insider whale” unrealized profit has been shrinking from $15.5 million
• “CZ’s counterparty” turned from profit to loss, unrealized loss of $12 million
• Other long accounts are also experiencing similar difficulties

This is not just individual whale misoperation but a shared fate faced by long positions during the overall market downturn.

Personal Viewpoint

The experience of this account highlights several key points:

First, even whales cannot oppose market trends. Large size does not mean low risk. When the market direction is clearly downward, larger positions and higher leverage lead to faster losses.

Second, the approach of liquidation risk can be faster than expected. Going from a profit of $56 million to a loss of $50 million in just a few days shows how quickly risk management measures can become too slow.

Third, the concentration of longs on Hyperliquid is high. Once the market turns, it can easily trigger a chain of liquidations. This whale account may become a trigger for larger-scale liquidations.

Summary

The $106 million devaluation of this ETH long whale is a microcosm of the current market’s long-side difficulties. The account shifted from profit to loss in just a few days, with less than $700 to the liquidation line. Any further decline could trigger forced liquidation.

More importantly, this reflects systemic market risks: excessive concentration of longs, high leverage, and insufficient risk management. When the market trend turns, these issues tend to erupt collectively. For market participants, this is a clear warning — in high-leverage trading, size and patience are not the most important; timely stop-loss and risk management are key to survival.