It is not a secret that crypto can sometimes be a hub for mostly degenerate 100X traders who thrive on volatility. While there’s a chance of making money, traders often lose, and sometimes they get wrecked so badly that they quit trading altogether.

Coinglass data showed that over 74,000 traders were forcibly liquidated in the last 24 hours alone, resulting in over $201 million in cumulative losses.

(Source)

However, in what’s turning out to be a highlight of the week, one crypto influencer and “expert” trader lost $1 million in 11 days.

The bad news is that this wasn’t his money but rather the money of investors who had decided to trust his trading expertise on Hyperliquid.

Rektober Fell Victim to Hyperliquid’s Irresistible Offer

Reports show that Rektober engaged in reckless trading on the decentralized exchange, causing investors to lose $1 million for copying his trades via the Hyperliquid vault.

There’s hardly anyone to blame in this situation.

Hyperliquid offers a decentralized perpetual trading platform similar to Binance and OKX, but it also has a unique feature: community-owned vaults.

On its explainer page, the exchange describes vaults as a solution that “democratizes strategies typically reserved for privileged parties.” Through vaults, everyone—except United States residents—can supply liquidity and share in the profits and losses.

In simpler terms, Hyperliquid vaults can be described as decentralized hedge funds. As a liquidity provider (copy trader), your funds are locked up for at least four days before you can withdraw them.

Since vaults are public, anyone can open a vault and be its manager. You don’t have to prove anything. Anyone who does is called a Vault Leader, AKA, the fund manager.

Hyperliquid offers Vault Leaders a 10% profit share as management fees. They must first share their strategy and deposit at least 100 USDC into the vault.

Liquidity providers can then deposit funds into any vault they choose, trusting the leader to execute profitable trades. All they have to do is copy their trades.

When writing, traders had deposited over $172 million to multiple vaults.

One of them, “Testicles” manages over $488,000, 35 days after launching.

The 11 Day Disaster on Hyperliquid

For Rektober, however, the vault was an opportunity to trade recklessly. After creating a vault and attracting followers, he quickly amassed over $1 million in deposits.

That’s when things went south. It could have been the pressure to prove himself flawless and capable of beating the market to his followers.

In just 11 days, the trader completely wiped out the entire fund, leaving investors with nothing but regret.

Rektober blew up his Hyperliquid vault in 11 days

have to imagine this is the good heuristic for the average performance of CT pic.twitter.com/wJPtP3Ki4N

— soup (@soupdefi) January 13, 2025

The loss can only be described as catastrophic, and it gets worse. Rektober is currently unreachable on his X page, and all his posts are now “protected.”

Is Rektober a Scam Artist?

A review of Rektober’s X page suggests this might not be the first time he has lost investors’ money.

While it cannot be immediately verified, one user claims he frequently “blows up his account like every four months.”

Another user adds that Rektober is known for “his serial rug pulls, rugs, turns down his X account for a few days, comes back botting more followers as if nothing happened.”

Unless law enforcement gets involved, the truthfulness of these claims cannot be determined.

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The post 11 Days, $1 Million Gone: Influencer Gets “Rekted” on Hyperliquid appeared first on 99Bitcoins.