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

A Hyperliquid perpetual tied to Brazil's largest US listed equity ETF plunged as much as 27% before traditional markets reopened, anticipating a historic selloff in Brazilian stocks. 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.

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