A mysterious trader on Hyperliquid has increased a massive short position on Bitcoin to roughly $488 million at 10x leverage, raising the specter of a forced liquidation if BTC rallies.
Key Takeaways:
- The trader known for profiting from a prior broader crypto market crash, expanded a new short to about $488 million at 10x leverage, placing the position’s liquidation price near $124,270.
- Bitcoin was trading near $111,000 at the time of writing; that puts the short a significant distance from its stated liquidation level, but a sharp rally could quickly threaten the position.
- The position is large enough that an aggressive squeeze or rapid price swing could trigger outsized volatility on Hyperliquid and related on-chain liquidity pools.
A Hyperliquid account identified by on-chain observers, including Lookonchain, placed and then significantly increased a Bitcoin short in the last 48 hours. Lookonchain flagged this massive transaction on X (formerly Twitter) with position value reaching approximately $396 million at the time of posting.
Block-explorer data compiled by market trackers show the notional size of the position has grown to about $488 million at the time of writing (10:00AM UTC) using 10x leverage, which implies a liquidation threshold north of current market prices. The same market participant previously realized large profits from short bets during the recent crash, which is why observers are calling the actor “the Hyperliquid whale.”
Mysterious whale expanded their short BTC position, doubling it down since yesterday’s $163M. Source: Hypurrscan
After initially opening its short position with $163 million, the whale’s current bet has more than doubled since yesterday, with currently nearing $18 million of unrealized profit as Bitcoin continues its downward momentum.
BTC is Trading Near $111K Amid Risk-Off Pressure
At the time of writing (10:00AM UTC), Bitcoin (BTC) is approximately trading at $111,328, dropping 3.3% over the past 24 hours after peaking intraday highs near $115,934. The token’s price has currently reached as low as $111,209.
The market was modestly softer on the day after a broader risk-off episode in equities and macro headlines. Short-term momentum indicators point to a neutral-to-slightly-mixed technical picture; lower timeframe RSI reads have been oscillating in a middle band rather than extreme oversold or overbought territory.
Expert Reaction: Analysts Caution of Potential Volatility
On-chain sleuths and market analysts have pointed to the timing and scale of the trade as reasons for heightened monitoring but have stopped short of assigning intent beyond aggressive directional trading. Some traders on X and market commentary threads have questioned whether the timing of earlier shorts, which was taken minutes before major macro headlines, was prescient or coincidental. Independent analysts caution that single large positions can amplify market moves even if the platform’s risk systems ultimately prevent systemic harm.
Outlook: Watch for Volatility as Whale Position Looms
In the short term, expect elevated volatility around macro headlines and any sudden BTC uptick, since the position’s size and leverage make it a potential catalyst for sharp moves. Market participants should monitor on-chain explorers and Hyperliquid’s telemetry for position changes and liquidation events; a forced unwind would be the clearest path to an abrupt squeeze. For investors, the situation underscores why risk management, portfolio sizing, and monitoring of concentrated leveraged flows remain essential in crypto markets.
Summary
A Hyperliquid whale expanded a BTC short to ~$488M at 10×, placing liquidation near $124,270 while BTC hovered around $111K. The size and leverage raise the odds of a sharp squeeze if price spikes; traders are watching on-chain telemetry and liquidation feeds closely.
