Hyperliquid’s native cryptocurrency HYPE has tanked by another 9% slipping to $12.54, as the network faces massive $160 million in outflows following the liquidation of the massive ETH long positions on the platform. The ETH whale liquidation event triggered a $4 million loss in the platform’s HLP Vault, triggering huge seeling pressure in HYPE price.
HYPE Price Drops As Hyperliquid Records $166M AUM Outflow
Following the liquidation of the ETH long positions, HYPE price has come under severe selling pressure in the last 24 hours. The recent 8% drop comes along with a 51% surge in daily trading volumes, shooting past $207 million. This shows that there’s a growing bearish sentiment around the altcoin as of now.
Hyperliquid experienced a significant net outflow of $166 million in assets under management (AUM) on March 12, marking the platform’s second-largest single-day outflow on record. The substantial outflow is believed to have been driven primarily by withdrawals from HLP Vault depositors in response to the losses.
Whale’s $340M ETH Long Position Triggers Liquidation
A high-leverage whale trade involving 175,000 ETH, valued at approximately $340 million, has led to significant market movements. The trader initially secured a floating profit of $8 million and closed 15,000 ETH before transferring 17.09 million USDC in margin back to their address.
However, following the margin withdrawal, the remaining 160,000 ETH long position was liquidated. The large liquidation size forced Hyperliquid HLP to assume the position at $1,915. The platform is now gradually unwinding the position to mitigate market disruption and manage associated risks.
In order to avoid the massive outflows and user panic, Hyperliquid stated that this wasn’t a part of the protocol vulnerability or a hacking incident. Instead, the user withdrew margin while holding unrealized profits, lowering their margin ratio and triggering liquidation. Despite a $4 million loss in the past 24 hours, Hyperliquid’s HLP maintains a total historical profit of approximately $60 million.
Is It Right Time to Buy the HYPE Dips?
Prominent crypto analyst CryptoGod John has expressed bullish sentiments for HYPE price, highlighting the current market conditions as a potential buying opportunity.
John noted that the token has retraced significantly since its earlier listing pump, entering what he describes as a strong support zone.
“Seen some drama on the timeline about it — but think this is a good area to scoop some while most hypetards who were loud at $20+ have now become very quiet,” John remarked.
Cardano has faced a series of setbacks recently, with its price failing to break through key resistance levels and subsequently experiencing a decline.
These struggles have left traders and investors feeling uncertain and bearish. The combination of weak inflows and skepticism among traders has stalled Cardano’s recovery.
Cardano Needs To Find Strength
For the past week, Cardano’s funding rate has fluctuated between positive and negative values, reflecting the unstable sentiment in the market. This fluctuation indicates that traders are attempting to capitalize on the price decline by placing short contracts. At the time of writing, short contracts dominate long positions, signaling that traders remain cautious and expect further declines.
This bearish sentiment is reinforced by the fact that short positions are outpacing long positions. As a result, the market is under heavy downward pressure, and there is little indication that a strong recovery is imminent unless there is a significant shift in trader behavior.
Cardano’s macro momentum is also impacted by a lack of investor support, as shown by the Chaikin Money Flow (CMF) indicator. The CMF has been stuck below the zero line for the past three weeks, indicating that money is flowing out of Cardano, not into it. This suggests that investor confidence is low, which is a major barrier to price growth.
Although the CMF recently showed a slight uptick, the broader trend of negative netflows remains intact. The lack of sustained inflows signals that investor sentiment has weakened, making it challenging for Cardano to break free from its current bearish trend.
Cardano’s price currently sits at $0.68, just under the crucial resistance level of $0.70. The altcoin appears to be on track for consolidation between $0.77 and $0.70. However, this consolidation could signal a lack of upward momentum and indicate a prolonged period of stability.
If ADA’s bearish sentiment persists, Cardano’s price could struggle to break the $0.70 barrier and instead slide further toward $0.62. This would mark a further decline and signal that the current price action is unlikely to result in a recovery without substantial shifts in market conditions or investor sentiment.
On the other hand, if investors begin to see the current price as an opportunity, Cardano could breach $0.70 and potentially rise beyond $0.77, towards $0.85. This would invalidate the bearish outlook, opening the door for a more significant price rally. However, without a notable increase in support, Cardano’s price is likely to remain under pressure.
Bitcoin price continues to struggle under the $90,000 mark on Tuesday April 22, as into crypto in response to Trump’s onslaught on the US Fed Chair unsettling global financial markets. In an exclusive interview, AMLBot CEO Slava Demchuk hints how compliance standards and blockchain analytics tools could improve global investor confidence and accelerate sovereign adoption of cryptocurrencies.
Crypto Hacks Hampering $5 Trillion Market Cap Growth Target
The cryptocurrency market is targeting a $5 trillion valuation in its next bull cycle but faces a growing spate of security breaches.
According to CertiK’s Q1 2025 Hacked report, total losses from 197 crypto crime incidents reached approximately $1.67 billion—more than three times the losses recorded in the previous quarter.
Cryptocurrency Market Cap hits $2.83 trillion as of April 22, 2025 | Source: Coingecko
One of the largest incidents involved centralized exchange Bybit, which suffered a $1.45 billion exploit. CertiK reports that attackers are increasingly relying on sophisticated methods, including social engineering, AI-generated scams, and smart contract manipulation, to evade detection.
With institutional interest expanding and sovereign entities exploring digital assets, experts say unchecked security risks could slow growth and undermine confidence in the asset class.
Compliance Expert Provides Risk Mitigation Impact
Speaking to the risk spate of crypto exploits, Demchuk emphasized that blockchain compliance tools themselves can become targets if not properly secured. “Tools designed to enhance transparency and detect risk can, if misused, enable phishing and obfuscation of illicit activity,” he said.
Crypto Crimes Q1 2025 By Risk Factor | Source: Certik
According to the Certik chart above, Phishing, Code vulnerability and Private Key compromise are the most successful hack methods, each occurring 81, 68 and 15 times respectively. Combined, the three factors were responsible for just $206 million or 8% of the total losses.
Meanwhile, High-profile hot wallet compromise, occurring 3 times, including the Bybit hack, resulted in $1.45 billion losses, which accounts for more than 80% of total heisted funds.
“Our mission has always been to democratize access to compliance tools and promote crypto hygiene across the digital asset ecosystem. In our view, compliance platforms must ensure accessibility for good actors without opening the door to malicious use.
That’s why we implemented firm access controls and continue working with law enforcement globally to track stolen assets, dismantle fraud networks, and assist victims.”
AMLBot has responded by implementing a series of safeguards: business-only onboarding tiers, real-time threat modeling, and segmented dashboards that limit access to sensitive data for retail users.
This approach differs from competitors such as Scorechain and BitOK, which Demchuk says lack rigorous identity verification requirements.
Demchuk said these controls are designed to prevent misuse of compliance infrastructure and reflect the need for tools that evolve alongside the threats they are meant to address.
Compliance as Catalyst to Prevent Crypto Crimes
AMLBot’s systems have reportedly prevented more than $100 million in potential losses since 2019. The platform screens wallets for links to criminal activity and uses machine learning to detect patterns associated with common fraud schemes, including pig butchering scams.
Demchuk cited the company’s recent cooperation with Thai authorities as an example of how public-private collaboration can strengthen crypto security.
He advocates for basic global compliance measures—such as KYC verification and politically exposed person (PEP) screening—even in jurisdictions without formal regulatory oversight. These tools, he argues, could reduce the scale of losses like those seen in the first quarter.
Compliance as Catalyst for Institutional Confidence
In addition to preventing fraud, compliance is viewed as a key factor in attracting institutional capital. The EU’s Markets in Crypto-Assets (MiCA) framework has raised the regulatory bar for crypto firms operating in the bloc.
Demchuk believes compliance tools and standardised practices can help cryptocurrency protocols and firms enhance due diligence processes.
As sovereign entities consider holding Bitcoin reserves and more institutional products come to market, Demchuk said the next phase of growth will depend on how well firms integrate compliance into their operations. Without it, he warned, the sector may struggle to maintain long-term credibility.
Conclusion
Bitcoin’s rise above $90,000 on Tuesday signals strong investor appetite amid macroeconomic uncertainty in the US markets.
But as the cryptocurrency industry grapples with security risks the $1.7 billion in stolen crypto during the first quarter of 2025, represents a 330% increase from Q4 2024 figures, beaming critical spotlight on global compliance infrastructure.
AMLBot CEO Slava Demchuk says a combination of analytics, repsonsible use of compliance tools, and proactive risk controls will be necessary to reduce incidence of crypto crimes and attract institutional capital.
Without such measures, the industry’s $5 trillion market cap goal may remain out of reach.
