Following confirmation of Brazil's election result, the EWZ contract on Hyperliquid at one point fell approximately 23%

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Brazilian equities EWZ plunge sharply 23%causing longs to suffer million-level liquidations as dip-buying funds begin to re-enter

BlockBeats reported,October 26, according to TradingBeats monitoring, as of publication, the Brazilian equities ETF contract EWZ is currently quoted at 34.276 USD，24 down approximately over the past hour 23.11%, with trading volume of approximately 55290000 USD. Among them, 08: 00 to 09: 00 recorded approximately 576300 contracts in trading volume in a single hour, accounting for approximately 24 of the current hourly trading volume 40.6%, with trading concentration rising significantly.

This decline accompanied the finalization of Brazil's election results, reversing the market's previous positioning. Today at 08: 08, Beijing time, Brazil's Superior Electoral Court confirmed Lula's re-election victory. The market had previously wagered on a victory by right-wing candidate Flávio Bolsonaro, expecting him to tighten fiscal policy, lower financing costs, and support a stronger real.

Reuters reported that, as of last Friday, Brazil's stock market had risen nearly 7%, while the real appreciated nearly USD against 5%. Following Lula's re-election, this trading thesis faces reassessment.

Alejo Czerwonko, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, believes that the market rally after the first-round vote could be substantially reversed, and that credible commitments to fiscal discipline and a path toward debt stabilization are still needed.

On-chain open interest first contracted, then partially recovered.EWZ Open interest was 15420000 USD in the morning, fell to 8950000 USD at midday, and subsequently rebounded to approximately 13960000 USD, an increase of approximately 56%from the morning low, though it remained below the level during vote counting.

Trading has already seen large long positions liquidated, as well as profitable short positions automatically deleveraged (ADL):

- Large long liquidated: A long position established half an hour before vote counting, with a transaction value of approximately 1618200 USD, was fully liquidated at 08: 05, realizing a trading loss of approximately 152300 USD（0x615f）。

- Profitable short position subject to ADL: Another account accumulated short positions in 61000 contracts of EWZ this morning, of which approximately 29400 contracts, corresponding to 1056000 USD in short positions, were automatically deleveraged by the system, realizing a trading profit of approximately 173400 USD. The account currently still holds approximately 787000 USD in short positions, with an unrealized profit of approximately 175500 USD（0x888e）。