Hyperliquid treasury lost 4 million dollars due to the liquidation event starting with 0xf3f4 Address

Techub News reported that the Decentralization exchange Hyperliquid's HLP (super liquidity provider) treasury suffered a $4 million loss due to the 0xf3f4 starting Address liquidation event, causing the Hyperliquid Token HYPE price to drop by 8.5% today.

HLP is the core component of the Hyperliquid protocol, which is a community-owned insurance fund that operates market making and liquidation strategies, allowing users to deposit USDC and share profits (or losses) proportionally to their shares. It democratizes access to strategies typically reserved for institutional market makers and generates revenue through trading fees, funding payments, and liquidations. Deposits are locked for four days, and the performance of the insurance fund is transparently tracked on-chain.