HyperLiquid's Vaults Result in $1 Million Loss by Rektober, 14% by Sifu

HyperLiquid, a blockchain and derivatives exchange, has been highlighted for allowing crypto influencers to manage funds, resulting in significant losses for users. Influencer Rektober, with 83,000 followers, managed to lose over $1 million in just two weeks through a HyperLiquid 'vault,' a feature that allows influencers to create and manage funds similar to miniature hedge funds. These vaults require a minimum seed of 100 USDC and the manager must maintain 5% of the vault's monetary value at all times, while receiving a 10% profit share. Another influencer, Sifu, whose real name is Omar Dhanani and who was involved with failed crypto projects QuadrigaCX and Wonderland, has also led a vault that lost 14% of its users' money in the past month. HyperLiquid has seen over $17 billion in liquidations since its inception, with a 29% decline in total value locked in the past four weeks.