Traders on the decentralized exchange Hyperliquid faced widespread liquidations totaling $79.7 million as benchmark oil prices plunged. The losses occurred as users speculated on Brent and WTI crude oil perpetual futures.
This event underscores the growing exposure of Hyperliquid users to real-world asset price movements. Nearly 3,000 users had their leveraged positions on crude oil futures forcibly closed due to adverse price swings. Bitcoin perpetual futures also saw significant liquidations, amounting to $107 million.
Hyperliquid, once primarily focused on cryptocurrencies, has seen its users increasingly trade real-world assets since an upgrade in October. Previously, in January, the exchange experienced a surge in liquidations related to precious metals like gold and silver.
The sharp decline in oil prices followed reports of a potential U.S.-Iran ceasefire. Benchmark oil prices were on track for their largest daily drop since the start of the COVID-19 pandemic in 2020.
Brent crude oil futures fell 12.6% to $94.5 per barrel, while WTI crude oil futures dropped 15% to $96.