A trader associated with a wallet linked to the previous UXLINK attack has started closing substantial positions on the decentralized derivatives platform Hyperliquid. Following significant losses, the trader commenced a Time-Weighted Average Price (TWAP) strategy on November 9 to reduce exposure, with the program scheduled to conclude by 06:00 GMT on November 10.
Escalating Losses Prompt Forced Liquidations
Initially perceived as one of the most lucrative addresses on Hyperliquid, the trader’s stance has shifted dramatically due to recent market downturns, leading to a net loss of $3.3 million. The asset offloading is reported to add short-term pressure on Ethereum, Solana, and XRP.
The trader maintains a long position in Ethereum, comprising 30,282 ETH, worth approximately $55.46 million, with a liquidation price set at $1,740. For Solana, a leveraged long position of 550,000 SOL is held, which will face liquidation if prices retract to $65.6. Additionally, the investor possesses about 35.03 million XRP, valued at roughly $35 million, with a liquidation point marked at $0.94.
The TWAP sale initiative launched on November 9 aims to systematically close the trader’s cumulative open positions worth $148 million.
UXLINK Connection Resurfaces
In September 2025, the cryptocurrency social network UXLINK, integrated with Telegram, suffered an attack exploiting vulnerabilities in its multi-signature infrastructure, resulting in a devaluation of treasury assets and unauthorized token minting. Total losses from the subsequent market fall were calculated at around $42 million.
In August 2026, an anonymous trader moved 11.54 million USDC to Hyperliquid. Ethereum transactions used to cover gas fees from this account were traced back to addresses linked with the previously stolen UXLINK assets, rekindling connections between the wallet and the past hack.
EmberCN suggests that ETH transfers to cover gas fees for the trader’s wallet were from addresses tied to the misappropriated UXLINK funds.
From Profits to Market Reversal
Prior to these events, the trader had recorded gains on five closed deals, totaling a net profit of $5.71 million. At the end of October, the Ethereum position alone indicated an unrealized profit of $5.6 million.
However, the market’s sharp reversal eroded these profits, putting a majority of the trader’s portfolio at risk of liquidation. The ongoing asset sales are expected to impose additional pressure, particularly on positions with high leverage.
