Hyperliquid's Maji Account Witnesses Sharp 98% Value Collapse in Five Months

The Hyperliquid trading account operating under the handle ‘Maji’ has experienced a dramatic financial deterioration, with its portfolio value contracting to approximately $1 million as of February 17, according to BlockBeats. This represents a staggering decline from a peak valuation exceeding $50 million just five months prior—a loss of nearly $49 million in less than half a year. The severity of this drawdown highlights the inherent risks associated with leveraged trading in the cryptocurrency derivatives market.

Treasury Reserves Becoming Critical Resource for Position Maintenance

The account’s continued operations appear increasingly dependent on historical capital reserves. Notably, recent replenishments to the Maji account have been sourced from the PleasrDAO treasury, which the account holder deposited five years ago. This reliance on legacy funds suggests that readily available liquid capital may be approaching critical depletion levels. The account has not retreated from market exposure; instead, over the past 12 hours, it has maintained its aggressive stance by incrementally expanding long positions across Hyperliquid’s derivatives products, with current total exposure valued at approximately $15.87 million.

Compounding Risk Through Sustained Leverage

The pattern of behavior—depleting assets while simultaneously increasing leveraged exposure—underscores a concerning strategy in volatile market conditions. With the Hyperliquid account now operating at a fraction of its former size, each percentage point of adverse price movement carries magnified impact on remaining capital. The account’s persistence in accumulating long positions despite substantial losses raises questions about risk management protocols and the viability of sustaining current trading strategies amid ongoing market uncertainties.