Huang’s account, identified as “0x020c,” is nearing a substantial floating loss on the decentralized exchange (DEX) Hyperliquid. This dramatic turn of events involves a 5x leveraged long position, primarily focused on the Plasma (XPL) token, which had previously yielded significant gains. According to Hyperdash blockchain data, this position is now teetering on a liquidation threshold of $0.5366.

Hyperliquid Loss: A Massive Hit

Despite the steep decline in value, Huang has chosen to maintain his trades. The decision has already cost him over $115,000 in funding fees. Additionally, Huang is managing a 15x leveraged Ether (ETH) position, with funding costs of $1.2 million, currently reflecting around $534,000 in unrealized profit.

The floating loss marks a significant hit for the investor, whose account had previously amassed over $44 million in profit. According to blockchain data platform OnChain Lens, this sudden downturn was highlighted in a recent X post.

Despite Losses, Profits Persist

Even with this losing position, Huang’s account remains in the black, showing a combined profit and loss (PnL) of over $11.6 million. This development follows Huang’s exit from a $25 million Hyperliquid (HYPE) position, resulting in a $4.45 million loss on September 29.

The exit was prompted by a warning from BitMEX co-founder Arthur Hayes’ family office fund, Maelstrom, about approaching HYPE token unlocks. These unlocks, set to commence on November 29, represent the token’s “first true test” under a 24-month vesting schedule.

Whales Bet on Plasma’s Recovery

Amidst Huang’s Hyperliquid loss, other major investors, or “whales,” are banking on a Plasma token price resurgence. Over the past week, whale wallets have increased their XPL token holdings by more than $1.16 million across 226 wallets. During the same period, $3.83 million worth of XPL tokens have exited exchanges, as reported by crypto intelligence platform Nansen.

One whale wallet, “0xd80D,” acquired $31 million worth of XPL tokens on Hyperliquid, amassing a total of over $40.2 million in XPL holdings, according to Lookonchain’s blockchain data.

However, Plasma’s vesting schedule could unleash $90 million worth of XPL tokens on October 25, potentially increasing selling pressure. This event is slated to be the month’s third-largest token unlock by value, according to CryptoRank data.

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