Hyperliquid's Biggest Nvidia Bull Sits On Over $2M Paper Loss As Huang Scandal Rattles NVDA Stock

What happened

A Hyperliquid trader holding Nvidia-linked perpetual futures contracts had an unrealized loss of more than $2 million after reports that the company’s board was considering removing CEO Jensen Huang triggered further after-hours selling. The headline also states that the trader’s paper loss exceeded $2 million.

Confirmed

Global impact / market context

The reported selling pushed the value of this leveraged bet below the trader’s average purchase price, creating a large paper loss and recurring funding costs. If Nvidia’s price falls further, the position could lose more value; liquidation would force it closed if account safeguards were reached.

Analyst inference

The article links Nvidia’s after-hours decline to reports that its board was considering removing CEO Jensen Huang, but gives no confirmed board decision. The trader’s position is a contract tied to Nvidia shares, not evidence of broader investor losses or company operating changes.

Analyst inference

What to watch

1. Whether reports about the board and Jensen Huang lead to a confirmed decision; leadership uncertainty could sustain pressure on Nvidia shares and affect the value of contracts tracking them. Analyst inference
2. Whether Nvidia’s share price continues falling and how the trader’s unrealized loss changes; the article reports a liquidation price of $86.67, about 47% below its stated mark price. Confirmed
3. Whether the trader adds funds, reduces the position, or is liquidated; cross margin means the account balance backs the trade, so losses can draw on funds beyond the position itself. Analyst inference

Affected assets

• USDC — USD Coin

Evidence

• stocktwits.com