Uh, can someone please help me understand what just happened here? I entered a short position on XPL as it was running up, was significantly in the red after some wild moves to the upside, was considering averaging up (expecting an imminent crash to capitalise on) and then the crash happened and my position was closed for a loss above my entry price?

    Continued to crash and I would have been in for a nice profit if my position wasn't already closed for me :))

    I read some top-line stuff about the auto deleveraging mechanism however I still don't understand how it is fair or okay to force closures so that the system can remain "solvent".. wtf is the point of lining up a trade if this could happen? And if I wasn't lucky enough to have had my closure forced somewhat near my entry could I potentially stand to take a huge loss if this were to happen again?

    Hyperliquid Auto-Deleveraging
    byu/Then-Action-9255 inCryptoMarkets



    Posted by Then-Action-9255

    Share via