Bybit CEO: The 50x leveraged whale ETH long order liquidation event on Hyperliquid may promote innovation in CEX and DEX liquidation mechanisms

Odaily Planet Daily News Bybit CEO Ben Zhou posted on the X platform that the 50x leveraged whale on Hyperliquid liquidated ETH on a large scale, essentially using the platform's liquidation engine to exit. CEX actually faces the same challenge. When whales are liquidated, the CEX liquidation engine will also take over the position. Reducing the overall leverage ratio is one way, and it may be the most effective way, but doing so will hurt the business because users always want to get higher leverage. In addition, although it is also possible to consider deploying tools such as dynamic risk limit mechanisms, such as reducing the total leverage ratio according to the total position size as the position becomes larger, if users use multiple accounts, this problem cannot be fundamentally solved. If DEX hopes to provide high-leverage services for a long time and avoid situations like the 50x leveraged whale on Hyperliquid using the platform's liquidation engine to exit, it may need to try CEX-level risk management, such as market monitoring to detect abusers and market manipulators. It is interesting to follow the subsequent development of this matter, which may promote innovation in the liquidation mechanism.