How scammers use HyperLiquid to launder money:
1. Deposit $5M in stolen funds to HL.
2. Use 50x leverage to open a $250M short (against funding).
3. Hedge the short by opening $250M in longs on other exchanges using “clean” money.
4. Coin drops 2% → HL short gets liquidated → stolen funds are wiped.
5. Meanwhile, the “clean” long positions gain 2% → $5M profit, now fully laundered.
Why it works:
- Leverage forces liquidation on small moves (2% drop = full wipe).
- Shorting against funding makes a squeeze more likely.
Rinse, repeat, cash out.
P.S. Obviously, this is a simplified version.
They’ll tweak position sizes to avoid perfect 1:1 hedges, making it harder to track, etc.
1. Deposit $5M in stolen funds to HL.
2. Use 50x leverage to open a $250M short (against funding).
3. Hedge the short by opening $250M in longs on other exchanges using “clean” money.
4. Coin drops 2% → HL short gets liquidated → stolen funds are wiped.
5. Meanwhile, the “clean” long positions gain 2% → $5M profit, now fully laundered.
Why it works:
- Leverage forces liquidation on small moves (2% drop = full wipe).
- Shorting against funding makes a squeeze more likely.
Rinse, repeat, cash out.
P.S. Obviously, this is a simplified version.
They’ll tweak position sizes to avoid perfect 1:1 hedges, making it harder to track, etc.
Reporting 205 of you to FBI, why are you bookmarking this 😭😭😭
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