7 Key Facts: Gold & Silver Liquidations Surge at Hyperliquid in Trading Frenzy

Jakarta, Pintu News – Liquidation of derivative positions related to gold and silver has increased sharply on the Hyperliquid platform, reflecting a surge in volatility and traders’ high exposure to tokenized assets on the exchange. This phenomenon coincides with extreme movements in commodity prices on global markets and trader activity in perpetual contracts on precious metals.

1. Liquidation Surge in Gold & Silver Positions

In a single day, the perpetual market for gold and silver on Hyperliquid saw liquidations worth around USD 71 million, meaning positions were forcibly closed due to insufficient margin. These liquidations mostly occurred when the silver price experienced a large swing, with a drop of around 12% from recent highs. This amount represents a significant portion of the total liquidations on Hyperliquid, although Bitcoin still leads the liquidations with a total of around USD 121 million.

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2. Impact of Commodity Price Volatility

Sharp price movements in precious metals commodities increase the risk for traders using high leverage. Silver briefly dropped to around USD 106 per ounce before recovering slightly, while gold also printed high prices in the same session.
These price swings complicate leveraged positions, triggering automatic liquidation in the futures market.

3. Traders are More Exposed to Real-World Assets

Hyperliquid’s expansion in October 2025 allowed third parties to create trading pairs for real assets such as commodities. This has increased the number of users engaging in derivative contracts on precious metals that were previously rarely available in the DeFi space. As a result, liquidation in gold and silver became a prominent phenomenon when market volatility magnified.

4. Many Users Affected

Data shows that around 3,200 Hyperliquid users experienced liquidation of positions related to precious metals, indicating that many traders were affected in a single trading period. Such liquidations generally occur when there is insufficient margin to withstand rapid price movements. This risk is higher on platforms that offer large leverage and 24/7 trading.

5. TradeXYZ’s Role in Metal Derivatives

Derivative contracts on gold, silver, and other metals on Hyperliquid are offered through marketplaces created by third parties, including TradeXYZ. This development expands access to the precious metals market in DeFi and makes more trading contracts available.
But this increased access also means a higher risk of liquidation when markets move sharply.

6. Metal Trading Activity on Hyperliquid is Very High

Trading volume for silver contracts on Hyperliquid reached billions of dollars in the last 24 hours, far surpassing activity for gold on the platform.
Silver is one of the most active assets after Bitcoin in terms of perpetual futures trading volume. This high volume demonstrates the large participation of traders in commodity price speculation through DeFi platforms.

7. Risk Implications & Lessons for Traders

This extreme liquidation phenomenon shows that access to precious metal derivatives through decentralized exchanges is not without risk. Traders who use large leverage have the potential to experience rapid losses when markets are volatile. Investors – especially those who are young or new to the crypto/DeFi market – need to understand the risks of leverage and volatility when participating in these kinds of derivative contracts.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference
– André Beganski/Decrypt. Gold, Silver Liquidations Spike on Hyperliquid Amid Trading Frenzy. Accessed January 30, 2026.