Guides and reference · Liquidation walls, explained
Guide 02 of 091 min read
Liquidation walls, explained
Why clusters of liquidation prices matter, and how WhaleRadar finds them in Hyperliquid data.
A liquidation wall is a price level where many leveraged positions would be closed by force at the same time. If price reaches it, longs are sold or shorts are bought automatically, which can push price further in the same direction.
Why walls on Hyperliquid are exact
On most exchanges, liquidation maps are estimates built from assumed leverage. On Hyperliquid every position is public, including its liquidation price. WhaleRadar reads those prices directly instead of guessing them.
Why a wall looks soft
Each liquidation price is exact, but a wall is many of them spread over a range, and they shift when whales add margin, resize or close. So the radar draws a wall as a soft shape: dense where most of the money sits, fading where fewer positions are. The label marks the price where the money is centred. As price moves, the whole shape moves closer to the centre or further away.
How WhaleRadar finds a wall
Liquidation prices within ±20% are grouped per side. A group counts as a wall when several whales and a large share of the money that could be liquidated sit there. The largest wall is the one named in The Read. Walls count every wallet, whatever its label, because a hedger’s forced close moves the price the same way as a bet’s.
What a wall says
A wall says where forced flows would happen, not whether the price will get there. A large wall of shorts a few percent above the price means a rise could set off extra buying. It is not a signal to trade.