Controversial internet personality Andrew Tate has suffered significant losses trading perpetual contracts on the decentralized exchange Hyperliquid. On-chain data reveals Tate made 76 trades with only a 35.53% win rate, resulting in a net loss of $583,000. Despite these losses, he maintains a 25x leveraged long position on Ethereum (ETH), raising concerns about the high liquidation risk in volatile markets.
Tate's trading difficulties mirror those of notable Hyperliquid trader James Wynn, who previously lost tens of millions due to high-leverage positions, including a $100 million BTC long and a costly 10x PEPE trade. These public wipeouts have spotlighted the dangers of excessive leverage on decentralized trading platforms.
The fallout from these events has prompted Hyperliquid to reduce maximum allowed leverage — Bitcoin from 50x to 40x, and Ethereum from 33x to 25x. Tate's credibility has been questioned amid claims he falsely boasted of profitable trades while his wallet data indicated large losses. The transparency afforded by blockchain data underscores the double-edged nature of decentralized finance, where influencer claims are verifiable in real-time.
Industry analysts warn that leveraged trading above 10x significantly increases liquidation risk by over 40%, especially in volatile assets like ETH. Incidents such as a March 2025 $200 million ETH position wiped out at 50x leverage highlight how quickly funds can vanish. Tate’s case has reignited discussions on influencer responsibility, transparency, and the need for improved risk protocols in DeFi.
Ultimately, these episodes serve as cautionary tales about the pitfalls of high-leverage DeFi trading. They emphasize the importance of educating investors about the risks and ensuring platforms implement safeguards to protect users from catastrophic losses.