Arkham's ledger shows that Hyperliquid deposits amounted to $727,000, withdrawals were $0, and even the referral rewards lost totaled $75,000.

Written by: Gino Matos

Translated by: Luffy, Foresight News

Former world boxing champion and billionaire Andrew Tate deposited $727,000 into the cryptocurrency trading platform Hyperliquid over the past year, during which he made no withdrawals. After a series of high-leverage liquidations, his account was wiped out on November 18, with all funds disappearing.

According to Arkham's on-chain ledger records, Tate also reinvested approximately $75,000 in referral commissions earned by inviting other traders to join the platform, which ultimately faced liquidation as well.

This incident serves as a typical case of how high leverage, low win rates, and habitual doubling down can turn six-figure funds into a public spectacle, especially when traders publicly disclose every transaction in real-time on social media.

Tate's trading activities on Hyperliquid lasted nearly a year, with the first recorded forced liquidation occurring on December 19, 2024. Arkham's trading history review shows that on that day, his long positions in multiple cryptocurrencies, including BTC, ETH, SOL, LINK, HYPE, and PENGU, were simultaneously liquidated.

The trading pattern over the next 11 months was already evident at that time: using high leverage for directional bets on cryptocurrencies, almost no risk management, and a tendency to re-enter losing trades with even higher leverage rather than reducing risk exposure.

June's Ethereum Bet

The most publicized collapse occurred on June 10. Tate posted that he was long on Ethereum with 25x leverage at around $2,515.90, boasting about the size of the trade and his unwavering confidence.

A few hours later, the position was liquidated, and the related post was deleted.

The next day, the on-chain analysis platform Lookonchain released a dashboard screenshot linking a Hyperliquid tracking address to Tate. The data showed that he had made a total of 76 trades with a win rate of only 35.53%, resulting in a cumulative loss of approximately $583,000.

Such a low win rate means that Tate needed the profits from winning trades to significantly exceed the losses from losing trades to break even, but he did not achieve this.

Hyperliquid's order book and settlement layer are highly transparent; anyone who follows the relevant address can see every entry trade, every margin call, and every liquidation. Tate's habit of posting updates before the results of trades were finalized further amplified the exposure of the events.

September and November: Final Struggles

In September, Tate faced another high-profile loss when his long position in WLFI was liquidated, resulting in a loss of about $67,500.

At that time, reports indicated that Tate attempted to re-enter the trade at a similar price level, only to incur further losses. This pattern repeated in the final weeks of his account's existence.

By November, his funds had significantly dwindled. On November 14, a 40x leveraged long position in Bitcoin collapsed, resulting in a loss of approximately $235,000. Four days later, his account was completely emptied.

The final liquidation occurred around 7:15 PM EST on November 18, when Tate's last long position in Bitcoin was liquidated at nearly $90,000.

Arkham's post-event analysis revealed that throughout the trading cycle, Tate had deposited a total of $727,000, made no withdrawals, and exhausted his entire balance, including the $75,000 in referral earnings.

This referral earnings figure is noteworthy: Tate successfully attracted enough traders to join Hyperliquid to earn a substantial rebate, but he reinvested this earnings into the same type of leveraged positions that had already caused him six-figure losses.

This not only reflects a failure to preserve principal but also a failure to recognize the fatal flaws in his trading strategy.

According to Lookonchain's summary, from November 1 to 19, Tate faced a total of 19 liquidations, ranking among the traders with the most liquidations on the Hyperliquid platform that month, with only Maji Brother and James Wynn having more forced liquidations during that period.

His final trading records included mainstream cryptocurrencies like BTC, ETH, and SOL, as well as several niche tokens, with all trades leveraging between 10x and 40x.

The higher the leverage, the smaller the price drop required to trigger a margin call. In a month of extreme volatility in the cryptocurrency market, margin calls came particularly frequently.

How High Leverage and Low Win Rates Consume Funds

The mechanism behind Tate's account collapse is quite simple: high leverage amplifies both gains and losses, while a win rate below 40% means that the number of losing trades will exceed the number of winning trades.

In perpetual contracts, for a position with 40x leverage, a mere 2.5% adverse price movement is enough to trigger liquidation.

Tate's positions often hovered at or above this threshold, meaning that even a slight pullback could lead to forced liquidation.

When he re-entered after a liquidation with similar or higher leverage, he was essentially repeating the same trade with less principal and the same risk parameters. Over time, this pattern gradually depleted his funds.

The $75,000 in referral earnings exacerbated the severity of the problem. Hyperliquid's referral program pays a certain percentage of rebates based on the trading fees generated by users invited by traders.

Tate earned this $75,000 because he brought in enough trading volume (whether from his own trades or from trades made by followers who registered through his referral link) to qualify for the rebate.

However, he neither withdrew this rebate nor used it to reduce leverage; instead, he reinvested it into positions that had already been liquidated multiple times.

This decision either reflects his firm belief that the next trade would reverse the trend or indicates a fundamental misunderstanding of how quickly leverage can consume funds when win rates remain persistently low.

Why the Event Played Out Publicly

Tate's willingness to publicly disclose updates before the results of trades made his personal trading account a public ledger.

Most traders who collapse due to high leverage tend to handle their situations discreetly; their liquidation records are reflected in the exchange's aggregated data but are not tied to specific identities.

In contrast, Tate would post entry trade information, mark positions, and sometimes delete evidence after a forced liquidation, a pattern that inevitably attracted media coverage and on-chain tracking.

Platforms like Arkham and Lookonchain have built tools to track this account because they know that each liquidation will generate clicks and comments.

The transparency of Hyperliquid makes such tracking effortless. Unlike centralized exchanges, Hyperliquid's account data is not private; its trading settlements occur on-chain, and anyone who knows the address can view the trading history.

Once Lookonchain linked Tate's public identity to a specific Hyperliquid address, this ledger became a public spectacle.

Every margin call, every re-entry, and every final liquidation was timestamped and archived in real-time.

The broader question raised by the Tate incident is: Are high-leverage perpetual contract platforms designed to enable retail traders to profit, or are they intended to extract funds from overconfident traders?

Hyperliquid offers up to 50x leverage on certain trading pairs, automatically triggering margin calls when equity falls below the maintenance margin threshold.

For professional traders with strict risk management, these tools can facilitate efficient capital strategies; but for traders with low win rates who habitually double down, they are akin to "liquidation machines."

Tate's $727,000 collapse will not change Hyperliquid's fee structure or leverage limits, but it does provide a public case study demonstrating what happens when high leverage, low win rates, and blind re-entry converge.

The platform collects trading fees from every position, every re-entry, and every forced liquidation; the referral program paid Tate $75,000 to attract trading volume, which was subsequently recouped through liquidations.

From a business perspective, the operation of this system aligns perfectly with its design intent.

For retail traders observing this event, the lessons are more about the structural dynamics of leveraged trading than about Tate's specific mistakes.

As long as position management and risk management are handled properly, a 35% win rate can still allow for survival; but when combined with 25x leverage and a habit of re-entering losing trades with even higher leverage, it becomes deadly.

The transparency of on-chain settlements means that these dynamics can be observed in real-time, making personal collapse events either public education cases or public entertainment material.

Tate's account has been wiped out, but Hyperliquid's order book continues to operate normally. $727,000 has vanished, and the referral earnings are no longer present, while this trading ledger remains publicly visible.

All that remains is a timestamped record, warning people of how quickly leverage can consume funds when traders refuse to stop-loss and exit.

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