On Wednesday, Hyperliquid traders experienced extensive liquidations as benchmark oil prices dramatically fell, underscoring the growing vulnerability of users to fluctuations in real-world asset markets.
Data from Allium reveals that nearly 3,000 individuals who speculated on Brent and WTI crude oil saw their positions closed involuntarily due to unfavorable price movements over a 24-hour period. Simultaneously, approximately 2,380 traders were liquidated while trading Bitcoin perpetual futures.
Hyperliquid users incurred losses amounting to $79.7 million in leveraged positions related to Brent and WTI crude oil perpetual futures. On the exchange, Bitcoin was the sole other asset prompting similar financial setbacks, with losses totaling $107 million.
Initially popular for its cryptocurrency offerings, Hyperliquid has seen a surge in bets on real-world assets since an upgrade in October allowed such trading. In January, users endured a wave of liquidations as gold and silver prices fell from record highs.
Benchmark oil prices dropped significantly after U.S. President Donald Trump announced Iran’s acceptance of a two-week ceasefire, reminiscent of the previous instance when similar price movements led to liquidations following a five-day halt on military actions against Iranian energy infrastructure. Additionally, an explosion near Port Arthur, Texas’s oil refinery contributed to market volatility.
The Wall Street Journal reported that Wednesday marked the largest daily decline in benchmark oil prices since the onset of the COVID-19 pandemic in 2020. The publication noted that crude oil prices had only witnessed a drop exceeding 14% four times since 1989.
Trading Economics data indicated that Brent crude oil futures for June delivery fell by 12.6% to $94.5 per barrel on Wednesday, while WTI crude oil futures dropped 15% to $96.
On Myriad, a prediction market affiliated with Decrypt’s parent company Dastan, trader confidence waned regarding the likelihood of WTI crude oil futures reaching $120 before dropping to $55. The probability was adjusted to 63%, down from 89% the previous day.
President Trump stated that Iran’s ten-point peace proposal could serve as a solid foundation for negotiations. He has consistently claimed that reopening the Strait of Hormuz, through which 20% of global oil transits, would require “a little more time.” Less than a week ago, Myriad traders were divided on whether the 7-day moving average of ships passing through the strait would exceed 15 before May. By Wednesday, they predicted a 74% chance that this threshold would be reached within the next 22 days.