AC comments on the Hyperliquid HLP liquidation incident: Position size is not a fixed function of leverage, DeFi should not have fixed value leverage
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Planet Daily News: Regarding the previous incident where "a certain address imitated the whale's 50x leverage operation on Hyperliquid, dumping 398 million JELLY short positions and causing Hyperliquid's vault to face liquidation and losses," Sonic Labs co-founder Andre Cronje posted on X platform, stating: Position size is not a fixed function of leverage, but depends on available liquidity and realized volatility. Small positions can have 1000x leverage, while large positions may only have 1.2x leverage. In DeFi, there can be no fixed values.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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