Whale outlasts Hyperliquid BTC defenders in $449 million leverage tussle

Source Cryptopolitan

A Bitcoin whale with a $449M in a short position managed to take profits and unwind, before being liquidated by a social media task force. The whale then moved on to long Hyperliquid (HYPE). 

A whale used the extremely risky 40X leverage option on Hyperliquid to short Bitcoin (BTC), causing a backlash from the crypto community on X. However, the whale managed to take profits and close the position before being liquidated. The whale’s actions were considered a factor for the depressed BTC market over the weekend.

The whale still holds a leveraged short position on BTC, which at current prices is $2.7M in profit. The whole leveraged position is valued at over $449M. The liquidation price, after shifting the position, is at $86,088, with some leeway from the current valuations. 

The Hyperliquid whale saved the leveraged short position, despite concerted efforts from other traders to reach the liquidation price.
The Hyperliquid whale saved the leveraged short position, despite concerted efforts from other traders to reach the liquidation price. | Source: Hyperliquid

The appearance of a short BTC whale, dubbed Mr. Short, caused a minor rally as other traders attempted to open long positions and liquidate the whale. However, BTC lacked momentum and stalled just under the whale’s liquidation price. 

The whale currently holds a 3X cross-leverage position on Hyperliquid (HYPE) and a small 5X position for MELANIA. 

The BTC market recovered over $83,306.53, meaning the whale can continue holding the leveraged position and even take profits. 

The whale also holds 10 sale orders for the price level of $83,484, valued at over $8.88M BTC. Each order is for 108.47 BTC, awaiting favorable market conditions. The whale can thus benefit if other traders boost the price of BTC, which is close to his sell order range. 

The whale’s actions are also one of the factors that keep BTC on the low side, once again unable to regain the $85,000 level and stage a recovery. 

Mr. Short whale invites counter-trading action

Hyperliquid, with its outsized leverage options, has become an arena for risky trades. Whales have attempted high-leverage positions, as in the case of an Ethereum (ETH) bearish whale, which saddled one of the exchange’s pools with bad debt. 

The traders are capable of avoiding liquidation long enough while taking profit along the way. The only way to counter those positions is for traders with long positions to sway the price to the liquidation range. 

A trader from the Berachain community called for organized action, as soon as the whale’s position appeared late on Sunday. The so-called hunting of the whale required other large-scale traders to commit with significant positions. 

Over the course of a few hours, the whale shifted their liquidation price upward, for now defeating the efforts of counter-traders. The initial liquidation price, targeted by the counter-traders, was $85,290. The whale at one point had an unrealized loss of $1.3M, but they managed to turn it into to unrealized profits.

The team of traders managed to drive BTC above $84,690 briefly, but the whale avoided liquidation by depositing another $5M in USDC margin. After that, the whale even increased the short position to its current size of over $449M. 

Estimates suggest up to $500M may be needed to sway BTC to a price where the whale gets liquidated or is forced to increase margin deposits again. For now, Mr. Short remains the winner, though the unrealized profit remains uncertain.

The Hyperliquid whale remains anonymous

The whale remains anonymous, though the wallet was linked and funded by an ENS vanity address. Traders on social media speculated whether the whale is Eric Trump himself, with no supporting evidence.

Previously, shorting BTC was considered a risky move, in fear of being squeezed by other traders. This time around, BTC traders still operate on a fearful sentiment, and there was not enough organic volume to challenge the high-leverage position. 

The whale’s risky trade also set expectations the position would be liquidated soon, unleashing a weekly BTC rally. For now, the outcome of the trade remains uncertain, as the whale has fluctuated between expanding the position or trying to average out of it. 

The whale’s actions were time-sensitive and risky, with constant need to alter the position. At one point, the whale bought BTC at the lower price range of around $83,000. During peak trading conditions, the whale had $11.2M in unrealized profit.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Tesla Q2 Earnings Preview: Record Deliveries Fail to Hide Profit Pressure, Can Musk Rely on AI and Autonomous Driving to Unlock New Growth Space?Tesla ( TSLA) will release its second-quarter financial results after the U.S. market close on July 22, Eastern Time. As one of the most closely watched technology and automotive companie
Author  TradingKey
7 hours ago
Tesla ( TSLA) will release its second-quarter financial results after the U.S. market close on July 22, Eastern Time. As one of the most closely watched technology and automotive companie
placeholder
Crude Oil Price Forecast: Worsening US-Iran Tensions Support Oil Prices Breaking Above $90, Can Brent Crude Return to $100?As of the Asian session on July 20, Brent crude ( UKOIL) opened higher and moved higher today, attempting to break through the $90 mark during intraday trading, reaching a high of $91.42.
Author  TradingKey
7 hours ago
As of the Asian session on July 20, Brent crude ( UKOIL) opened higher and moved higher today, attempting to break through the $90 mark during intraday trading, reaching a high of $91.42.
placeholder
WTI surges above $83.00 amid escalating US-Iran conflictWest Texas Intermediate (WTI) oil price opened at a bullish gap, trading around $83.50 per barrel during the Asian hours on Monday.
Author  FXStreet
16 hours ago
West Texas Intermediate (WTI) oil price opened at a bullish gap, trading around $83.50 per barrel during the Asian hours on Monday.
placeholder
Gold Price Forecast: Cooling Inflation Fails to Offset Fed Hawkish Pressure, Gold Price May Fall to $3,500As of the Asian session on July 17, gold prices ( XAUUSD ) fluctuated around $4,000. However, it is worth noting that gold closed at $3,969.41 yesterday, confirming a break below the $4,0
Author  TradingKey
Jul 17, Fri
As of the Asian session on July 17, gold prices ( XAUUSD ) fluctuated around $4,000. However, it is worth noting that gold closed at $3,969.41 yesterday, confirming a break below the $4,0
placeholder
TradingKey Daily Market Brief: Gold Falls Below $4,000, TSMC’s Strong Earnings Fail to Stop AI Trade Cooling, Chip Stocks Sold OffTracking Market TrendsTradingKey - On July 16, Eastern Time, the three major US stock indexes closed down collectively. Although US economic data performed robustly and the start of the Q2 earnings se
Author  TradingKey
Jul 17, Fri
Tracking Market TrendsTradingKey - On July 16, Eastern Time, the three major US stock indexes closed down collectively. Although US economic data performed robustly and the start of the Q2 earnings se
goTop
quote