A Whale’s Short on PENGU Liquidated, $13M Loss
- Whale liquidated on PENGU, $13.16 million loss.
- PENGU price spiked, affecting derivatives platform.
- This event reveals the risks of leveraged trading.
The liquidation event underscores the risks associated with highly leveraged positions in volatile altcoins. The market witnessed increased volatility, highlighting the precarious nature of trading memecoins.
The whale, identified through the wallet address 0x670…af6e0, opened a short position worth $18.42 million with 3x leverage, betting against PENGU. However, a spike in PENGU’s price led to the position’s liquidation at $0.04028.
The immediate effects prompted discussions about risk management among traders. Observers noted a surge in market volatility on Hyperliquid, though no dramatic shift in total value locked data has been published.
“A trader is facing a potential liquidation event on a massive PENGU short position on the Hyperliquid platform. The analysis, citing on-chain data from Hypurrscan, shows that on July 10th, wallet address 0x670…af6e0 opened a 3x leveraged short position on PENGU valued at $18.42 million, with an entry price of $0.01609…”
— @ai_9684xtpa, On-chain Analyst source
Financial implications could unfold for those connected to the PENGU trade. The absence of formal statements from institutional bodies like the SEC parallels trader-led discussions, warning of potential ripple effects.
Insights into past market behavior suggest that similar liquidations, particularly in memecoins or low-cap tokens, can result in temporary volatility spikes without systemic repercussions. Analysts on platforms such as X/Twitter continue to examine these trends.
