Catenaa, Saturday, October 25, 2025- Hyperliquid saw open interest collapse and liquidations surge following last week’s $7.4 billion market wipeout, raising concerns for traders.
In the seven days before the event, daily trading volume averaged $10 billion across all pairs.
After the cascade, daily liquidations jumped 70 percent, even as trading volume climbed 17 percent, signaling aggressive “revenge trading.”
Open interest fell from $13.8 billion to nearly half, with altcoins accounting for almost $3 billion of losses. Despite a slight recovery, interest remains far below pre-cascade levels. Hyperliquid cofounder Jeff Yan criticized some centralized exchanges for underreporting liquidations by up to 100 times.
On the same day, the platform upgraded its system to support permissionless perpetual futures deployment. Analysts warn that the post-liquidation surge in trading may exacerbate losses, leaving many traders in worse financial positions than before.
