In a shocking revelation, onchain investigator ZachXBT has identified a controversial whale trader on decentralized exchanges Hyperliquid and GMX, who amassed a staggering $20 million through highly leveraged trades. The trader, known as William Parker, has a notorious background marked by previous arrests for theft and hacking.
Parker, formerly known as Alistair Packover, was arrested last year in connection with allegations of stealing approximately $1 million from two casinos. This dubious history raises questions about the ethics of his trading methods, as ZachXBT states, “It is abundantly clear WP/AP has not learned his lesson over the years after serving time for fraud and will likely continue gambling.”
ZachXBT’s analysis highlights that the whale, leveraging up to 50 times on his trades, executed a catastrophic liquidation of an estimated $200 million Ether (ETH) long position on March 12. This move led to a consequential loss of $4 million for Hyperliquid’s liquidity pool while the whale pocketed some $1.8 million in profit. The platform clarified that this event was not an exploit, but rather a logical outcome based on its operational dynamics.
In response to this incident, Hyperliquid adjusted its margin requirements to better protect against similar occurrences in the future. Shortly after, on March 14, the whale resumed trading, this time focusing on Chainlink (LINK), continuing to highlight the precarious balance of high-stakes trading in decentralized finance (DeFi).
This situation has sparked discussions about the nature of perpetual futures or “perps,” which are contracts that allow traders to leverage their positions indefinitely. Traders typically use stablecoins like USDC as collateral to secure their trades, further underlining the risks associated with such high leverage.
Overall, the case of William Parker serves as a stark reminder of the risks and moral dilemmas present in the fast-paced world of cryptocurrency trading. It emphasizes the need for stringent regulations and better trader education to navigate the complex landscape of decentralized finance.
