Hyperliquid Trader Loses $1.54M Nvidia Position as Huang's Exit Sparks Sell-Off

Nvidia-linked perpetual futures on Hyperliquid came under heavy selling after Jensen Huang resigned as the company's CEO, president, and board member on November 12. The leadership change triggered a sharp reaction across crypto-based markets, with one trader's $1.54 million Nvidia long position getting liquidated.

The sell-off began earlier, when reports suggested Nvidia's board was considering removing Huang. Nvidia perpetual futures fell as much as 10% on Hyperliquid, while tokenized Nvidia shares from xStocks also dropped nearly 9%.

The situation escalated when Nvidia confirmed Huang's immediate departure. Chief Financial Officer Colette Kress was appointed interim CEO, while Harvey C. Jones became the company's first board chair.

For crypto traders, the episode has become a major test of how quickly blockchain-based markets respond to developments involving traditional companies.

A $1.54 Million Nvidia Long Gets Liquidated

Blockchain analytics platform Lookonchain reported that a Hyperliquid trader identified as 0x7368 was fully liquidated after news of Huang's departure.

The trader held a long position involving 9,959 Nvidia contracts, valued at approximately $1.54 million. The position was closed through two liquidation orders near $154.40, worth roughly $1.23 million and $307,530.

A liquidation happens when a leveraged trader's collateral is no longer sufficient to support an open position. The platform automatically closes the position to prevent further losses.

The $1.54 million figure represents the value of the liquidated position, not necessarily the trader's realized loss.

The same market reaction affected other large traders. Another Hyperliquid trader held approximately $9.35 million in Nvidia perpetual exposure and was facing substantial unrealized losses as prices declined.

These positions show how quickly leverage can become a problem when a traditional company's stock experiences a sharp move outside normal trading hours.

Nvidia Perpetual Futures Record More Than $2 Billion in Volume

The trading activity was not limited to individual liquidations.

Nvidia's NVDA-USDC perpetual futures on Hyperliquid recorded more than $2 billion in 24-hour trading volume on November 12, according to a market snapshot reported by The Crypto Times. The contract ranked among the exchange's most actively traded perpetual markets, ahead of Ethereum in that snapshot.

Nvidia perpetual futures volume at approximately $2.34 billion over 24 hours. Open interest also climbed significantly as traders adjusted their positions.

Open interest measures the total value of outstanding derivative contracts. Rising open interest alongside heavy trading can indicate that traders are opening new positions, although it does not reveal whether they are bullish or bearish.

The numbers highlight how traditional stocks are becoming part of crypto derivatives markets. Traders can gain leveraged exposure to companies such as Nvidia without directly purchasing shares through a conventional stockbroker.

However, perpetual futures are not the same as owning Nvidia stock. They are derivative contracts that track an underlying price and carry additional risks, particularly when leverage is involved.

Why Jensen Huang's Resignation Shook Nvidia Markets

Huang's departure followed a turbulent week for Nvidia.

The Wall Street Journal and The New York Times reported allegations involving two extramarital relationships, including one with Alice Huang, a businesswoman reportedly suspected by US authorities of having links to Chinese intelligence. Another report concerned Kimberly Powell, an Nvidia healthcare executive.

Nvidia's board had launched an investigation into the matter. The company previously said it had no reason to believe that US national security or its confidential information had been compromised.

On November 12, Nvidia confirmed that Huang had stepped down immediately. Kress will lead the company on an interim basis while the board searches for a permanent replacement.

The change is significant because Huang co-founded Nvidia in 1993 and led its transformation into a major supplier of AI computing hardware. Investors are now assessing whether the company can maintain its AI strategy and customer relationships during the leadership transition.

Nvidia shares fell sharply following the announcement, although they recovered some losses after opening lower. Reuters reported that retail investors stepped in to buy shares during Thursday's sell-off, helping limit the decline.

The company's upcoming earnings announcement on November 17 will provide another important checkpoint for investors.

The Sell-Off Continues a Growing Trend in Tokenized Stocks

The latest activity also connects with a broader development in crypto: traditional financial assets are increasingly being traded through blockchain-based platforms.

In our earlier coverage, Nvidia's $430 Billion Sell-Off Puts Crypto's Tokenized Stock Market to the Test, we examined how the initial reports about Huang affected Nvidia-linked products before the resignation was confirmed.

The latest liquidation adds a more direct example of the risks involved. Traders were not simply watching Nvidia's price move, some were using substantial leverage to bet on its direction.

There are also tokenized Nvidia shares available on Solana. Securitize launched tokenized Nvidia and Apple stock on Solana, with each token backed one-to-one by an underlying share under its product structure.

These products differ from Hyperliquid's perpetual futures. Tokenized shares provide blockchain-based exposure to an underlying security, subject to the issuer's structure and terms. Perpetual futures instead allow traders to speculate on price movements without owning the underlying stock.

Both markets can react to the same corporate news, but their ownership rights, risks, and settlement structures are different.

What Traders Should Watch Next

Nvidia's leadership transition is now official, but the market is still working through its implications.

The first major checkpoint is the company's November 17 earnings announcement. Investors will be looking for updates on AI chip demand, data-center spending, and whether the leadership change affects Nvidia's business outlook.

Crypto traders will also be watching Nvidia perpetual futures on Hyperliquid, particularly trading volume, open interest, and liquidation activity. A continued rise in leveraged positions could leave traders exposed to further volatility.

For now, the $1.54 million liquidation shows how quickly a corporate leadership shock can affect crypto traders. With Nvidia-linked contracts attracting billions of dollars in trading activity, traditional stock-market developments are increasingly becoming events that crypto markets cannot ignore.