Brazil suffers worst selloff in decades on Lula win as Hyperliquid tokenized perp led price discovery

Brazilian stocks suffered their steepest selloff in decades on Monday following President Luiz Inácio Lula da Silva’s surprise reelection. A Hyperliquid perpetual contract linked to the country’s largest US listed equity fund had already signaled the decline before traditional markets opened. Brazil’s benchmark Ibovespa index fell as much as 17.34%, marking its sharpest daily percentage decline since 1998, as the B3 exchange triggered a circuit breaker that temporarily halted trading. The selloff followed Lula’s victory over Senator Flávio Bolsonaro in Sunday’s presidential runoff, reversing market expectations of a Bolsonaro win. According to Brazil’s Superior Electoral Court, Lula secured 51.79% of valid votes against Bolsonaro’s 48.21%, winning a fourth presidential term. Before Brazilian and US stock markets reopened, a perpetual futures contract tracking the iShares MSCI Brazil ETF (EWZ) on Hyperliquid had already fallen as much as 27%, providing an early indication of how investors were pricing the election outcome. Hyperliquid perpetual anticipates Brazilian stock market crash The contract operates through Hyperliquid’s HIP-3 framework and is deployed by trading platform tra...