Hyperdash Flows
🔴 #HYPE Liquidated Long: $350.18K at $43.7757 [dash] [chart] 💥💥💥
Looking into this further, seems to be related to portfolio margin position being liquidated through "Partial Borrow Liquidation" notice.
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Clarification on today's $350K HYPE liquidation print at $43.77
That fill was a portfolio margin borrow liquidation, not a perp liquidation, and the $43.77 execution price was a backstop transfer, not a market trade. The liquidation fill's own recorded mark price was $52.43.
Mechanics: the account was carrying a spot HYPE position collateralizing borrowed stables. When account equity fell below the portfolio maintenance requirement, the liquidation engine seized ~8,000 HYPE (roughly $419K at mark) and transferred it directly to the backstop liquidator (method: backstop on the fill) instead of market-selling it into the book.
According to the liquidation docs, backstop liquidation happens when account equity drops below 2/3 of maintenance without a successful liquidation through the book. The position transfers to the liquidator vault (a component of HLP) along with the account's remaining margin, which is not returned to the user. That forfeited margin is why the recorded transfer price sits well below mark; it is a takeover price, not a trade. Standard borrow liquidations that market-sell collateral fill within a few percent of mark based on trailing 30 day data.
Liquidations
Portfolio margin
That fill was a portfolio margin borrow liquidation, not a perp liquidation, and the $43.77 execution price was a backstop transfer, not a market trade. The liquidation fill's own recorded mark price was $52.43.
Mechanics: the account was carrying a spot HYPE position collateralizing borrowed stables. When account equity fell below the portfolio maintenance requirement, the liquidation engine seized ~8,000 HYPE (roughly $419K at mark) and transferred it directly to the backstop liquidator (method: backstop on the fill) instead of market-selling it into the book.
According to the liquidation docs, backstop liquidation happens when account equity drops below 2/3 of maintenance without a successful liquidation through the book. The position transfers to the liquidator vault (a component of HLP) along with the account's remaining margin, which is not returned to the user. That forfeited margin is why the recorded transfer price sits well below mark; it is a takeover price, not a trade. Standard borrow liquidations that market-sell collateral fill within a few percent of mark based on trailing 30 day data.
Liquidations
Portfolio margin
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