Someone has shorted Hyperliquid with a position valued at $330 million, a factor that may have a major effect on Bitcoin’s price trajectory at the start of the coming week.
Details of the transaction
Recently, a whale on the Hyperliquid decentralized exchange (DEX) executed a 40x leveraged short (sell) position on Bitcoin, totaling an unprecedented value of over $366 million, with an estimated liquidation price of $85,587. This trader also incurred significant funding fees amounting to $243,000.
The whale is currently realizing an unrealized profit of $4.6 million due to the decline in BTC price.
Source: Hypurrscan
If this Trader locks in the current profit, the loss will be significant for Hyperliquid. Conversely, if Bitcoin suddenly reverses, leading to liquidation, this DEX will also have to buy BTC at a much higher price than the market, equivalent to a loss if the price jumps afterward.
*Update: The address increased its holdings to $380.7 million and adjusted the liquidation point to $86,593.
About Hyperliquid
Hyperliquid provides a fast and affordable trading environment for perpetual futures contracts, built on its own Layer-1 blockchain, HyperEVM, which prioritizes performance and scalability. This decentralized exchange also equips traders with advanced functionalities, including scale orders and copy trading. Despite its recent launch, Hyperliquid is rapidly establishing itself as a leading decentralized derivatives protocol, with daily trading volume second only to Uniswap, Raydium, and Meteora.
Several days prior, Hyperliquid had witnessed another whale execute a leveraged trade involving Ethereum ETH.
The whale deposited 15.23 million USDC into Hyperliquid to open an enormous ETH long position of 160,234 ETH, valued at approximately $306.85 million. By using leverage ranging from 13.5x to 19.2x, the trader controlled hundreds of millions of dollars in assets with only $23 million in actual capital.
Initially, the position showed an unrealized profit of $8 million. However, after the whale withdrew 17.09 million USDC, the margin level dropped significantly, triggering Hyperliquid’s automatic liquidation system. Despite being liquidated, the trader still walked away with a $1.86 million profit, while the HLP fund absorbed a $4 million loss.
Learn more: Hyperliquid Price Prediction
