Nvidia’s quarterly results are due next week, with Huang scheduled to appear for a testimony before Congress as well.
- Nvidia shares fell in after-hours trading after reports that the board planned to remove Jensen Huang over a second affair.
- Hypurrscan says a trader who bought the dip in Nvidia on Hyperliquid is down about $2.17 million on a long position worth about $31 million.
- The position was leveraged around five times.
A Hyperliquid (HYPE) trader who bought Nvidia’s (NVDA) dip was down more than $2 million in unrealized losses after reports that the chipmaker’s board was mulling a decision to oust CEO Jensen Huang triggered another round of selling in after-hours trading on Wednesday.
NVDA’s stock was down over 7% in overnight trading. On Stocktwits, NVDA was the top trending ticker at the time of writing.
A $31M Nvidia Bet Goes Underwater
According to Hypurrscan data, the trader currently holds approximately 190,950 xyz: NVDA contracts purchased at an average price of $174.43. The contract is a perpetual futures contract on Hyperliquid that tracks Nvidia’s stock price. Perpetual futures never expire and allow traders to bet on price movements with borrowed funds.
The position was worth approximately $31.14 million at a mark-up price of $163.06. This left the trader with an unrealized loss of approximately $2.17 million. The trader also paid approximately $20,557 in funding fees. These are recurring payments that keep the contract price close to Nvidia’s current share price.
Liquidation Still Far Away
According to Hypurrscan, the trader used a cross margin leverage of 5x. Under cross margin, the entire account balance backs the trade. The account contained approximately $14.98 million in USDC, a dollar-pegged stablecoin. That resulted in a liquidation price of $86.67, which was approximately 47% lower than the contract’s mark price.
Hyperliquid’s stock-tracking contracts trade around the clock. That meant the trader suffered the loss in real time while Nasdaq was closed. EmberCN, an on-chain tracker, flagged the trade on X.
The trader purchased the dip at $174.40 following the initial round of Huang news and became the largest Nvidia long on Hyperliquid.
Why Are NVDA Shares Under Pressure?
A fresh New York Times report claims that Huang had a relationship with Kimberly Powell, Nvidia’s vice president of health care, who reported to him. The board is reportedly meeting today and, The Wall Street Journal reported, was considering a decision on the CEO’s future at the company. Nvidia has not publicly commented on either report.
The new reports surfaced days after Huang admitted to an affair in a Nov. 8 memo to employees. US intelligence officials reportedly believe that Megaspeed executive Alice Huang, the partner, was working for China.
Huang’s fate will be the next test of the trade for the board. Nvidia is scheduled to report quarterly results on Nov. 17. Republicans have also called on Huang to appear at a congressional hearing on Nov. 18.
Retail Users Remain ‘Extremely Bullish’ On NVDA
Retail sentiment around NVDA remained in the ‘extremely bullish’ zone, accompanied by ‘extremely high’ chatter levels over the past day.
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One platform user said the stock has shown strong support at these levels, with room for a recovery in the next few days.
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Another user said that Nvidia’s “deep product roadmap” and the company’s long-term customer contracts as reasons for being bullish in the long run.
HYPE’s price was flat over the past 24 hours. On Stocktwits, retail sentiment around HYPE remained in the ‘bearish’ zone, accompanied by ‘normal’ chatter levels over the past day.
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