Hyperliquid, a trading-focused blockchain network, is raising margin requirements for traders following a significant loss of $4 million from its liquidity pool, HLP. This loss occurred on March 12 when a trader intentionally liquidated a $200 million Ether long position, leading to substantial unwinding of trades. Starting March 15, Hyperliquid will enforce a minimum collateral margin of 20% for certain open positions to mitigate the systemic risks tied to large positions. Notably, this $4 million loss stemmed not from an exploit but rather from predictable trading platform mechanics under extreme market conditions. While traders can still leverage up to 40 times for new positions, the modified rules will apply when withdrawing collateral from existing ones. As of March 13, HLP has a total value locked (TVL) of approximately $340 million, marking Hyperliquid as a prominent player in the leveraged perpetual trading sector, capturing 70% market share since its launch in 2024.

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