## [One trader VS. Hyperliquid's HLP vault](https://threadreaderapp.com/thread/1899798137000145067.html?utm_source=tldrcrypto)

A trader used high leverage to build a massive ETH long position on Hyperliquid, then strategically withdrew collateral to trigger liquidation, offloading risk onto the HLP vault while hedging elsewhere for profit. The result: a $1.8M gain for the trader and a $4M loss for HLP, exposing vulnerabilities in liquidity mechanics rather than an outright exploit.

#technology #crypto #hyperliquid #vulnerability