A Whale Has Shorted $25M of ETH, SOL, and BTC on HyperLiquid with 5X Leverage

A whale on HyperLiquid, a decentralized perpetual exchange, has taken a large position by depositing $25 million to short Ethereum (ETH), Solana (SOL), and Bitcoin (BTC) with 5X leverage.

According to Lookonchain, the position has already realized a portion of the losses, which are greater than $700,000.

The large position on Hyperliquid signals strong bullish pressure on Bitcoin, Ethereum, and Solana, potentially setting the stage for a short squeeze. Traders should keep an eye on Hyperliquid’s liquidation levels, as such significant positions could introduce heightened volatility and price reversals in these major cryptocurrencies.

At the time of writing, the whale is still facing an unrealized loss of $1.5 million. Ethereum’s surge, pushing its price further up, has contributed to these losses, with ETH short positions amounting to $1.2 million in unrealized losses.

According to Whale Alert, the whale recently added $12 million to its short positions, bringing the total to $29 million. The total value of all short positions now exceeds $68.9 million, but the whale is currently dealing with a floating loss of $3.32 million.

A whale deposited another $12M $USDC (Total: $29M) into #HyperLiquid to increase the short position on $ETH, $SOL, and $BTC with 3x leverage.

The position value of all shorts is now over $68.9M, with a floating loss of $3.32M.

Address: 0xb83de012dba672c76a7dbbf3e459cb59d7d6e36… https://t.co/VNAWSRCz9l pic.twitter.com/gpuw72MlaO

— Whale Alert (@whale_alert) May 25, 2023

Whale’s Short Positions Face Liquidation Risk

The recent 35% surge in Ethereum’s price over just one week has significantly impacted the whale’s short position on Hyperliquid. This growth has occurred despite broader market movements, leading to a diminishing Bitcoin dominance.

Currently, Bitcoin’s dominance is approaching 60% after reaching multi-year highs earlier this month. However, Ethereum’s performance continues to outpace BTC and other altcoins in 2023. The whale’s short positions are at risk of liquidation if Ethereum’s price spikes past $4,489.

Since the whale’s account is cross-market, an increase in any of the shorted assets could lead to liquidation across the entire account, further concentrating pressure on this position. Despite these risks, the whale is still earning funding fees from shorts, as most traders are currently optimistic on Ethereum, placing them in long positions.

Hyperliquid is gaining momentum in the crypto sphere as a whale expands their short position on Ethereum, Solana, and Bitcoin. Despite a 5.52% decrease in HYPE’s value over 24 hours, the token’s market cap has reached $8.14 billion, highlighting the platform’s growing significance in decentralized trading.

Hyperliquid’s 24-hour trading volume has surged to $186.13 million, showcasing a 26.02% increase, indicating high liquidity and rising investor interest. The platform has recently achieved a record-setting $5.6 billion in open interest, highlighting its strong standing in the decentralized derivatives market.