An anonymous whale named Mk4, trading on the cryptocurrency and derivatives trading platform Hyperliquid, lost approximately $400,000 due to an erroneous order in gold trades.
The incident occurred when the investor attempted to initiate a TWAP order with the “reduce only” option to reduce their existing GOLD long position.
According to reports, Mk4 only held a few hundred thousand dollars worth of GOLD long positions. However, it mistakenly sent a TWAP order to open a short position of 24,000 GOLD, worth approximately $109 million, for the next 50 minutes. It is stated that approximately 17,600 GOLD, or about $80 million, had already been traded before the error was discovered.
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In the first 10 minutes after the TWAP order was launched, the price of gold in global markets fell by approximately 0.3%, while the decline in the GOLD market on Hyperliquid was sharper, reaching approximately 0.5%. This indicates that a large-volume erroneous trade affected the short-term price movement on the platform.
Realizing his mistake, the investor halted the TWAP transaction and then initiated a new TWAP process, this time with gradual buying, to close the large short position he had opened. It was reported that the position closing process continued for 2 to 4 hours.
As a result of the incident, Mk4 reportedly suffered approximately $400,000 in losses.
*This is not investment advice.
