In the fast-paced world of crypto trading, rumors can spread like wildfire, especially on platforms like X (formerly Twitter). Recently, a wave of posts on Crypto Twitter—often abbreviated as CT—claimed that Andrew Kang, the founder of prominent crypto venture firm Mechanism Capital, suffered a massive liquidation on Hyperliquid, a decentralized perpetual futures exchange. Reports suggested losses around $151 million from highly leveraged short positions on Bitcoin (BTC) and Ethereum (ETH), along with positions in ENA, the token from the Ethena protocol.

But hold on—turns out, that's not the case at all. According to a reliable on-chain analysis from OnchainLens, these wallets don't belong to Kang. They've verified this through trusted sources, putting the brakes on the misinformation.

What Sparked the Rumor?

It all started with screenshots and posts highlighting aggressive trades on Hyperliquid. For those new to the term, liquidation in crypto trading happens when a trader's leveraged position gets automatically closed because the market moves against them, and their margin (collateral) isn't enough to cover the losses. Hyperliquid specializes in perpetual contracts, which are like futures but without expiration dates, allowing traders to bet on price movements with high leverage—up to 40x in some cases here.

The wallets in question, 0x0b5488eadf81e259963a748f4455844fe621c2d5 and 0x579f4017263b88945d727a927bf1e3d061fee5ff, showed partial liquidations on short positions for BTC at 40x leverage, ETH at 25x, and a long position on ENA at 10x. Shorting means betting the price will drop, while longing is the opposite.

Posts like one from @heycape_ exclaimed, "The famous whale Andrew Kang just got liquidated for $151.1M," complete with visuals that fueled the speculation. Others echoed similar sentiments, turning it into a hot topic.

The Debunking: OnchainLens Sets the Record Straight

OnchainLens, a project dedicated to simplifying on-chain data for everyday users, stepped in with their tweet. They clarified that several CT profiles got it wrong—these aren't Kang's wallets. Their verification came from reliable sources, though specifics weren't disclosed to protect privacy.

This isn't uncommon in crypto; wallet addresses are pseudonymous, making it easy to misattribute activity. Tools like Hyperbot.network help track trader performance, but linking them to real identities requires careful analysis.

Who Is Andrew Kang, Anyway?

If you're not deep in the crypto VC scene, Andrew Kang is a big name. He's the co-founder of Mechanism Capital, a firm that invests in crypto projects through proprietary trading and venture funding. Known for his sharp insights, Kang has been vocal about market trends, even critiquing predictions from analysts like Tom Lee of Fundstrat. His Instagram and X profiles often share thoughts on DeFi (decentralized finance) evolution.

Despite the rumors, there's no evidence from Kang himself addressing this directly in recent posts, but the on-chain experts have cleared the air.

Lessons for Crypto Traders and Meme Token Enthusiasts

While this incident revolves around major assets like BTC, ETH, and ENA (Ethena's governance token tied to their synthetic stablecoin USDe), it highlights risks that apply to meme tokens too. High leverage can amplify gains but also leads to quick wipes if the market pumps or dumps unexpectedly. Bitcoin and Ethereum's volatility is well-known, and ENA, while not a pure meme token, shares similar price swings in the DeFi space.

For blockchain practitioners, this is a reminder to verify sources before jumping on narratives. Tools like OnchainLens make it easier to dig into the blockchain data yourself. If you're trading memes or perps, always manage risk—use lower leverage, set stop-losses, and diversify.

Stay tuned to Meme Insider for more breakdowns on crypto drama, on-chain insights, and how it all ties back to the wild world of meme tokens. Got thoughts on this? Drop them in the comments!