The Currency analytics
By Maheen Hernandez
Hyperliquid got hammered Thursday. Gold and silver positions faced massive liquidations while traders scrambled to cover positions across the platform's trading floors.
Bitcoin wasn't the only asset getting crushed during the session, which saw unprecedented activity in precious metals markets.
Market analyst Jamie Thompson watched the chaos unfold from his Chicago office. "The simultaneous liquidation of both gold and silver is pretty unusual," Thompson said.
And it wasn't just retail traders getting burned. Several large trading firms jumped into aggressive strategies that probably made the whole situation worse.
Individual investors got crushed the hardest. Many retail traders on Hyperliquid faced sudden margin calls as gold and silver prices went haywire without warning.
Sarah Kim from Market Analysis Inc. thinks external economic indicators released earlier this week might have spooked traders.
The platform stayed silent throughout the chaos.
Financial strategist Mark Eldridge from Eldridge Capital pointed fingers at algorithmic trading systems.
Smaller traders vented their frustrations on online forums, questioning whether Hyperliquid's risk management features can handle extreme market conditions.
Portfolio manager Lisa Tran said her firm is reconsidering its precious metals exposure on Hyperliquid entirely.
The absence of official commentary from Hyperliquid left traders speculating about potential system changes.
Trading volumes for both metals remained elevated into the evening session. Gold recovered to around $1,870 per ounce by market close, but silver struggled to climb back above $22.
Institutional participation in precious metals trading on Hyperliquid has grown substantially over the past six months.
But the bigger question remains unanswered. Will Hyperliquid implement new safeguards to protect traders from similar liquidation events?
Reached for comment, Hyperliquid representatives didn't respond to multiple requests for information about Thursday's events.