Hyperliquid News Today: ZEC Surges 25%, Triggering $17 Million in Liquidations and Underscoring Crypto Market Volatility

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Bitget-RWA2025/11/17 03:26

By:Bitget-RWA

- A top trader lost $3.28M as Zcash's 25% surge triggered massive short liquidations in 12 hours. - Hyperliquid faced $4.9M losses from a Popcat meme coin trade, with a trader using $3M to open $20M leveraged positions. - Crypto markets show heightened volatility, with cascading liquidations exposing DeFi platforms' risk management gaps. - Regulators scrutinize leveraged trading risks as HYPE token demand declines and futures open interest drops to $1.56B.

A well-known trader recently suffered a major loss after a rapid increase in

Zcash

(ZEC) prices wiped out short positions totaling more than $3.28 million. This incident, which took place over just 12 hours,

underscores the unpredictable swings of the cryptocurrency market

and the dangers inherent in leveraged trades. During this period, ZEC's value

soared by over 25%

, resulting in $17.91 million worth of short positions being liquidated, according to Coinglass data.

Hyperliquid News Today: ZEC Surges 25%, Triggering $17 Million in Liquidations and Underscoring Crypto Market Volatility image 0

This episode is part of a larger pattern of notable liquidation events in the crypto space. Earlier in the week, decentralized exchange Hyperliquid

briefly halted deposits and withdrawals on Arbitrum

after a trader’s aggressive long bets on the

meme

token Popcat led to a $4.9 million loss for a community vault. The trader, known as MLM on social media, used $3 million in stablecoins to open $20 million in long positions across 19 wallets, speculating on Popcat’s price increase. When the token’s price dropped, the position was liquidated,

leaving the vault to cover the losses

. Hyperliquid’s liquidity provider, Hyperliquid Provider (HLP),

also reported a $4.9 million loss

from the same trades, adding to the platform’s difficulties.

The

ZEC

liquidation highlights how interconnected crypto markets are, with sharp price changes quickly affecting leveraged positions. Experts point out that this event

is consistent with broader market pressures

, such as waning retail interest in Hyperliquid’s native token (HYPE) and a fall in futures open interest from a peak of $2.08 billion in early October to $1.56 billion. Technical analysis indicates HYPE could face more downward pressure if the $35 support level fails,

signaling persistent bearish trends

Regulators and industry players are paying closer attention to the dangers of leveraged trading in crypto. The ZEC incident adds to a growing list of major liquidations, including the Popcat-related loss at Hyperliquid, sparking debate over risk controls on decentralized finance (DeFi) platforms. While

TruTrade’s QuickFund AI is designed to simplify proprietary trader assessments

, the recent wave of liquidations demonstrates the urgent need for strong protections in these highly volatile markets.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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